Goldman Sachs projects 17.5% PPoP growth for Indian banking sector through FY29

Goldman Sachs forecasts a cyclical recovery for Indian banks, projecting core pre-provision operating profit growth to accelerate to 17.5% annually from FY26 to FY29. The outlook is predicated on a 14% expansion in loan growth and a 10-basis-point recovery in net interest margins following a projected FY27 trough.