New Delhi, Jan. 9 -- Indian banks and non-banking financial companies (NBFCs) are expected to report a largely stable performance in the third quarter of FY26, driven by strong loan growth, resilient asset quality and a modest uptick in margins for most private lenders, according to a sector preview by Nuvama Institutional Equities.

Loan growth remained robust across the system, with private banks reporting year-on-year growth of about 11% and state-owned banks posting over 12% growth. NBFCs also continued to see healthy expansion in assets under management, the report said.

However, deposit mobilisation remained a challenge, pushing the system loan-to-deposit ratio to elevated levels of around 82%, a zone historically viewed as uncomfo...