New Delhi, Nov. 7 -- Indian banks are expected to have a steady growth in earnings and returns over the next 3-4 years, according to a report by Jefferies.

The report expects a 13 per cent compound annual growth rate (CAGR) in loan growth for banks between FY24 and FY27, underpinned by a supportive environment and expected adjustments in interest rates.

"Expect steady growth in earnings and stable returns, Over FY24-27, banks we cover should see 13 per cent Cagr in loans We factor 25-50bps cut in rates & depending on timing NIMs will move" the report said.

The report anticipated that interest rates may be reduced by 25 to 50 basis points (bps) during this period. Depending on the timing, these rate cuts could impact banks' Net Interest...