# Banking sector growth forecasts in India and South Africa > Live situation record from CLSTR: https://clstr.news/situations/banking-sector-growth-forecasts-in-india-and-south-africa > Updated: 2026-09-11T05:00:00.000Z. Sources: 4. Developments: 2. 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. ## Timeline ### 2026-09-11: FirstRand and IndusInd Bank forecast strong growth for FY2027 FirstRand and IndusInd Bank forecast strong growth for FY2027, driven by rising credit demand and expanding loan books in South Africa and India. 2 sources. https://clstr.news/cluster/firstrand-and-indusind-bank-forecast-strong-growth-for-fy2027 ### 2026-08-22: Goldman Sachs forecasts profit acceleration for Indian banks Goldman Sachs forecasts Indian banks' core profit growth to accelerate to 17% by FY26-FY29, predicting private banks will outperform PSU lenders due to better liquidity and loan economics. 2 sources. https://clstr.news/cluster/goldman-sachs-forecasts-profit-acceleration-for-indian-banks --- Cite as: Banking sector growth forecasts in India and South Africa. CLSTR, https://clstr.news/situations/banking-sector-growth-forecasts-in-india-and-south-africa