Indian banks seen posting modest Q3 profit growth; NIM trends diverge, says Citi

RBL Bank

24/12/2025 06:45

** Citi says Indian banks are expected to report 5% year-on-year growth in net interest income and 4% upside in profit after tax in the December quarter

** Credit growth is likely to slow to 3–5% QoQ, while net interest margins (NIMs) show divergent trends - Citi

** Citi expects margins to expand for AU Small Finance Bank AUFI.NS, HDFC BankHDBK.NS, Kotak Mahindra Bank KTKM.NS, RBL Bank RATB.NS and SBM Bank, remain flat for ICICI Bank ICBK.NS and IDFC First Bank IDFB.NS, and dip slightly for Axis Bank AXBK.NS and Yes Bank YESB.NS

** Citi placed a 90-day positive catalyst watch on HDFC Bank and Kotak Mahindra Bank KTKM.NS, while downgrading Federal Bank FED.NS to "neutral" after a sharp rally

** YTD, Nifty Bank Index .NSEBANK up 16.7%, compared with benchmark Nifty 50 .NSEI gains of 10.8%

(Reporting by Brijesh Patel in Bengaluru)

((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))