Indian Banks Get a Strong Cushion: 17-18% Credit Growth Helps Absorb Q2 Impact

Digant Haria says Indian banks can absorb potential Q2 mark-to-market treasury losses thanks to robust 17, 18% credit growth that provides operating leverage. He expects a token 25, 50 basis-point RBI hike in October, warns NBFCs may face margin pressure, and identifies foreign institutional investor selling and market sentiment as the main risks to bank stocks.