Mumbai, April 19 -- India's banks are bracing for a softer March quarter (Q4FY25), with earnings likely to underwhelm amid slower loan and deposit growth, sticky funding costs and rising stress in unsecured lending. This comes as a reversal from the robust performance seen in previous quarters, reflecting a sector that's now navigating a more challenging interest rate and credit quality environment.

The fourth quarter of FY25 is shaping up to be weaker for the banking sector, analysts say, marked by decelerating credit growth, margin compression, and elevated credit costs. Private banks with high exposure to unsecured and microfinance segments may post mixed earnings, while public sector lenders could turn in a relatively stable performa...