New Delhi, June 23 -- Indian banks are expected to maintain steady performance across most credit metrics in the financial year 2025-26 (FY26), even though earnings may come under pressure, according to a recent report by Fitch Ratings.

The report highlighted that Indian banks posted strong financial results in FY25 (year ended March 2025), which supports their standalone credit profiles and positions the sector for future growth.

However, Fitch cautioned that in FY26, banks' earnings might face cyclical pressures due to narrowing margins and higher credit costs.

It stated, "We believe banks can sustain steady performance across most credit metrics in FY26, except for earnings due to cyclical pressures on margins and credit costs".

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