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ICICI Bank, AU Small Finance Bank top picks as banking sector gears up for earnings revival

India's banking sector is poised for a strong earnings rebound. Profit growth is set to recover significantly over the next two years. Private lenders are expected to lead this growth. Deposit competition presents a near-term challenge. Asset quality risks appear manageable. The sector is transition

ICICI Bank, AU Small Finance Bank top picks as banking sector gears up for earnings revival

India's banking sector is poised for a strong earnings rebound. Profit growth is set to recover significantly over the next two years. Private lenders are expected to lead this growth. Deposit competition presents a near-term challenge. Asset quality risks appear manageable. The sector is transitioning to a differentiated growth narrative.

Earnings Economic Times May 30, 2026

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