Lenders with high unsecured loan exposure particularly some small finance banks might see their bottom line impacted in first quarter of FY26.
Banking sector stocks have performed at twice the rate of the top 50 stocks on the NSE in the last six months. However, some players in the sector, especially small finance banks (SFBs), might be headed for a bumpy ride amid rising pressure from unsecured loans impacting their net interest margins.
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