Indian Banks Expected to Report Stronger Q3 Profits Amid Healthy Credit Growth and Easing Margin Pressure

Indian banks are expected to report stronger Q3 profits after a weak first half of FY26. Credit growth remains healthy, margin pressure is easing, and asset quality is no longer deteriorating. Brokers have picked 10 banking stocks to buy, including ICICI Bank, Axis Bank, HDFC Bank, Kotak Mahindra Bank, and State Bank of India. Credit growth has improved across key segments, and deposits remain the key pressure point for the sector.