India’s financial sector emerged as the strongest theme at the UBS India Conference, with early signs of improvement in loan growth, stabilising credit costs and bottoming net interest margins, according to Gautam Chhaochharia, Head of Global Markets & India at UBS.

Speaking to CNBC-TV18, Chhaochharia said financials were “the one sector where optimism was visible on both sides — from companies as well as investors,” marking a notable shift from six months ago. While he cautioned that this is not yet a fully bullish phase, the tone has clearly strengthened.

Early loan growth revival

Despite a tough few quarters, several banks — particularly those that have historically been conservative — are beginning to see a pickup in loan growth. “Some banks are seeing early signs of acceleration, a

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