Banking stocks advance as loan growth strengthens and asset quality remains stable

Banking stocks climbed as loan growth accelerated and asset quality metrics showed continued stability.

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Banking stocks advance as loan growth strengthens and asset quality remains stable

Banking stocks advance as loan growth strengthens and asset quality remains stable
Banking sector stocks moved higher after fresh quarterly disclosures showed improving loan growth across retail, SME and corporate segments. Analysts noted that asset quality metrics remained stable, with reductions in slippages and improved collection efficiencies. Rising credit demand from manufacturing, infrastructure and consumer categories supported the sector’s performance. While funding costs remain elevated due to tight liquidity conditions, banks continue to benefit from stable margins and improving fee-based income. 
Market sentiment is also buoyed by expectations of stronger credit cycles heading into the next fiscal year.