The West Asia conflict and the risk of an oil supply shock could weigh on India’s financial sector, as higher oil prices that typically boost credit demand may this time hurt production and weaken cash flows. Jefferies warns that large banks’ FY27 earnings could fall 7–10%, while mid-sized banks may see a sharper impact. The brokerage also flags a triple challenge for the NBFC sector and highlights segments that may remain relatively insulated.
First Published: Mar 12, 2026 1:41 PM IS
