MUMBAI: Public sector banks (PSBs) are likely to demonstrate stronger earnings resilience in Q1 FY26, supported by relatively milder margin compression and higher treasury gains, according to a report on Thursday.
Emkay Global Financial Services highlighted a muted Q1 earnings season for private sector banks (PVBs), largely due to sluggish credit growth and a sharp contraction in margins following aggressive repo rate cuts.
In contrast, PSBs are likely to demonstrate stronger earnings resilience, the report mentioned.