Indian banks are likely to see further improvement in net interest income (NII) and earnings growth in FY27, supported by strong foreign currency non-resident (FCNR) deposit mobilisation, healthy credit demand and benign asset quality, according to ICICI Securities. The brokerage expects systemic credit growth of around 15 per cent YoY in FY27, with FCNR deposits likely to be accretive to growth, NII and earnings. The brokerage retained its positive stance on the banking sector after a healthy first quarter, with NII growth reaching a multi-quarter high of 11 per cent YoY in Q1FY27. Core pre-provision operating profit (PPOP) and profit after tax (PAT) grew around 15-17 per cent YoY, supported by controlled operating expenses and stable provisioning.