Private Banks Set For A Comeback? Expert Sees Profit Recovery, Better Margins & Attractive Valuations

Private sector banks may be nearing a turnaround despite a muted Q1 earnings season. Harsha Upadhyaya, CIO, Kotak Mahindra AMC, believes improving deposit growth, stable interest rates, and attractive valuations could support the sector over the coming quarters. He says pressure on net interest margins is likely to ease as further rate cuts appear unlikely, while credit growth remains healthy. According to the expert, much of the recent weakness has already been priced into private banking stocks, making the sector increasingly attractive for long-term investors seeking recovery opportunities.