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Below the Quote on outlook for the banking sector in Q3FY25 by Vipul Bhowar, Waterfield Advisors

In the post-COVID environment, credit growth reached a peak of 16% year-on-year but has since moderated to 11%, according to the Reserve Bank of India (RBI). While lower interest rates initially stimulated unsecured and retail borrowing, a considerable number of borrowers are currently experiencing financial distress due to persistently high rates.
Rising concerns regarding asset quality are evident, as the implementation of Expected Credit Loss (ECL) norms may necessitate increased provisions for non-performing assets (NPAs). Should economic conditions remain unchanged, banks may encounter additional profitability challenges.
Despite these issues, the outlook for banks remains stable, with an emphasis on deposit mobilisation and enhancements in asset quality.
Anticipated interest rate cuts could revitalise the struggling corporate lending sector. Furthermore, the forthcoming government budget and possible RBI rate reductions may contribute to accelerated bank credit growth."