Banking sector growth forecasts in India and South Africa

Financial institutions have issued optimistic growth forecasts for the 2027 financial year across India and South Africa.

In India, Goldman Sachs predicts a cyclical inflection point for the banking sector, forecasting that core Pre-Provision Operating Profit growth will accelerate to approximately 17% year-on-year between FY26 and FY29. This is expected to be driven by steady loan growth and recovering net interest margins. While private lenders like ICICI Bank and Kotak Mahindra Bank are expected to outperform, most public sector undertaking (PSU) banks face a less favorable outlook due to rising credit costs and upcoming wage revisions, with the exception of State Bank of India.

Complementing these projections, IndusInd Bank in India is targeting 16-17% credit growth for FY27, with plans to redirect $3.5 billion in FCNR deposits toward fresh lending. In South Africa, FirstRand projects high single-digit growth in net interest income for FY2027, driven by anticipated rising credit demand as inflation slows and interest rates decline.