The Economic Times News

PSU banks lead Q3 BFSI performance; HDFC Bank sees system-level growth in FY26: Kaitav Shah

PSU banks outperformed the BFSI sector in Q3, driven by stronger year-on-year credit growth, while smaller private banks and NBFCs faced transitional pressures. HDFC Bank expects FY26 growth in line with the system amid improving liquidity conditions. Analyst Kaitav Shah highlights asset quality, credit costs and selective opportunities across banking, NBFCs and small finance banks.