Bank credit growth seen in double digits in Q4; flat NIMs likely: Analysts

Q4 preview: Analysts believe earnings momentum is likely to gather pace, with healthy loan growth, stable margins, and improving asset quality trends

Banks are likely to report healthy January-March quarter (Q4FY22) earnings with loan book expected to grow, on an average, in double digits and asset quality staying stable. Analysts believe the quarter, which was marred by geopolitical tensions, rising bond yields, and global interest rates, may see a drag in non-interest income due to treasury losses and flattish net interest margins (NIMs).

"Earnings momentum is likely to gather pace, with healthy loan growth, stable margins, and improving asset quality trends. Investment income (trading gains/mark-to-market hit) is likely to be a marginal drag on earnings. That said, banks are seeing healthy growth