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India’s financials lag global peers, but earnings growth could turn the tide in 2027: Jefferies
Fortune India 1 hr ago·21 Sept 2026, 3:25 am
Jefferies' recent note points out that Indian banks and other financial firms have been trailing their overseas counterparts in profit margins and return metrics. The gap reflects slower credit growth, higher non‑performing assets and a tighter regulatory environment compared with peers in the US and Europe.
The firm sees a turnaround possible by 2027 as earnings are projected to accelerate, driven by rising loan demand, digitalisation and improving asset quality. For investors, this means the sector could offer better returns if the outlook materialises, but short‑term performance may stay muted. Keep an eye on quarterly results, RBI policy moves, and any shifts in global interest‑rate trends that could affect capital flows into Indian financials.
Excerpt from Fortune India
Indian financials have sharply underperformed their global peers over the past two years, but the gap could begin to narrow as the earnings growth trajectory turns in India’s favour, foreign brokerage Jefferies said. The MSCI ACWI Financials Index, which tracks large- and mid-cap financial companies across developed…Read the original at Fortune India
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