Indian banks are entering the results season with a steady macro backdrop and improving liquidity, Jefferies said in its India Financial Daily report dated October 17. System-wide credit growth stood at 10% year-on-year (YoY) as of September 19, while deposits grew 9%, keeping the credit–deposit ratio around 80%.

Liquidity, which had tightened earlier due to advance tax payments and festive spending, has turned positive again, with a system surplus at about Rs 1.4 lakh crore. Jefferies noted that “the system remains well-funded, liquidity has turned surplus, and growth visibility for FY26 is intact.”

According to the brokerage, private banks such as HDFC, ICICI, and Kotak offer quality compounding, while SBI and PNB are likely to provide value opportunities among PSUs. In the NBFC space,

See Full Page