India’s banking sector ended FY26 on a robust note, with systemic credit growth accelerating to 16.1% year-on-year as of March-end, reflecting sustained demand across segments. Notably, the final fortnight of the fiscal saw a sharp pickup, with incremental credit addition of nearly INR6 trillion, underscoring a strong finish to the year.

On the liability side, deposit growth also witnessed a meaningful surge, rising to 13.5% YoY compared to 10.8% in the preceding fortnight. The system added approximately INR12 trillion in deposits in the last two weeks of March alone, indicating an aggressive mobilization push by banks to support balance sheet expansion. Despite this improvement, the gap between credit and deposit growth remains elevated at 2.6%, though it has moderated from earlier levels.

This easing is reflected in key liquidity indicators. The system-level loan-to-deposit ratio (LDR) declined to 81.4% from 83% in the prior fortnight, while incremental LDR dropped sharply to 81% from 101%, marking one of the lowest levels since August 2025. The moderation suggests some relief in funding pressures, albeit within a still tight liquidity environment.

Banks have increasingly relied on wholesale funding avenues to bridge the gap. Certificate of Deposit (CD) issuances rose to INR14.3 trillion in FY26, up from INR11.7 trillion in FY25, with nearly 30% of issuances concentrated in February and March. Notably, peak CD rates touched 8.2% in March despite a lower policy repo rate of 5.25%, highlighting persistent tightness in system liquidity and elevated marginal cost of funds.

Structurally, regulatory frameworks such as Liquidity Coverage Ratio ad Net Stable Funding Ratio optimization offer headroom for balance sheet expansion, with potential for further improvement in credit-deposit ratios. This, coupled with strong second-half momentum, positions the sector for sustained growth.

Looking ahead, the sector is expected to maintain a steady growth trajectory, with credit growth projected at a 14% CAGR over FY27–28. However, the interplay between deposit mobilization, funding costs, and liquidity conditions will remain critical. While demand-side fundamentals remain intact, the ability of banks to efficiently manage liabilities will be key to sustaining margins and supporting future growth.

AU Small Finance Bank: Buy| Target Rs 1250

AU Small Finance Bank is actively pursuing a universal banking licence, which would significantly expand its liability franchise, reduce cost of funds, and unlock access to a much larger customer base. This transition, if successful, would re-rate the bank meaningfully, positioning it closer to established private sector peers in terms of valuation and business scale. AU SFB’s core strength lies in serving the underbanked and MSME segments across Rajasthan, Gujarat, and tier 2-3 markets; a space with decades of growth ahead. As financial inclusion deepens and credit penetration rises in these geographies, AU is structurally positioned to compound its loan book at a healthy 25-30% CAGR over the long term. Unlike most small finance banks, AU has demonstrated an exceptional ability to build a retail deposit base; a critical differentiator for long-term sustainability.

ICICI Bank: Buy| Target Rs 1750

ICICI Bank continues to deliver a well-rounded performance, supported by improving loan growth, a strong liability franchise and resilient asset quality. Growth remains well diversified, with SME and business banking expected to sustain high-teen expansion, supported by improving demand conditions and a healthy enquiry pipeline. We estimate the loan book to grow at ~16% CAGR over FY26–28.On the liabilities front, the bank maintains a stable and granular deposit base, with deposits growing ~9% YoY and CASA ratios holding steady at ~40–41%. Asset quality remains a core strength, with strong underwriting and adequate provision buffers ensuring stability. Credit costs are expected to remain contained at ~45–50 bps, while GNPA/NNPA ratios are likely to improve further. Overall, ICICI Bank is well positioned to deliver steady earnings growth, with PPoP/PAT CAGR of ~18%/16% over FY26–28, supporting RoA/RoE of ~2.3%/16.4%.

(The author is Siddhartha Khemka, Head of Research – Wealth Management, Motilal Oswal Financial Services)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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Gold demand and consumer sentiment remain firm ahead of Akshaya Tritiya on Sunday, April 19, as retail investors look to bullion as a preferred avenue for wealth creation.

Despite elevated price levels, the festival continues to serve as a primary driver for the precious metals market, supported by a year where gold delivered gains exceeding 60 per cent.

Experts indicated that while the volume of jewellery purchases may stay moderate, the overall value of demand remains strong due to the metal’s role as a hedge against global uncertainties.

Sachin Jain, Regional CEO, India, World Gold Council, noted that the festival remains a significant occasion for purchases, symbolising prosperity and long-term value.

“Akshaya Tritiya is the second-largest gold-buying festival in India and continues to be a significant occasion for gold purchases, symbolising prosperity and long-term value. While price movements earlier this year led to some cautious sentiment, demand fundamentals remain resilient, with gold prices up around 14-16% year-to-date. Recent geopolitical tensions have driven intermittent volatility, reinforcing gold’s safe-haven appeal,” Jain said.

The market also sees a shift in consumer behavior as younger buyers gravitate towards lightweight and contemporary jewellery. Jain explained that while traditional demand remains, there is an increasing preference for 22k and 18k options alongside digital gold and gold ETFs.
“However, prices have seen phases of stability and mild correction, offering a balanced entry point for retail consumers, with an upward trend expected towards the end of April. We are seeing consumers continue to support traditional jewellery demand, while younger buyers are increasingly gravitating towards lightweight, contemporary 22k and 18k gold jewellery as both an aspirational and accessible investment choice. We are also expecting continued growth in digital gold and gold ETFs, reflecting evolving investment preferences. Overall, we anticipate positive momentum in gold buying this Akshaya Tritiya,” Jain added. A report from Kotak Neo Research stated that investment-oriented products like coins and small bars see strong traction. This reflects a gradual evolution in consumption patterns in India, moving towards investing rather than merely holding physical gold for ornamental purposes.

The report stated that gold demand is expected to remain firm in value terms, although jewellery volumes may stay moderate due to elevated prices. “Investment-oriented products such as coins and small bars are likely to see strong traction, continuing the shift toward practical and liquidity-friendly formats,” the report noted.

India’s deep-rooted affinity for gold remains intact, with consumption patterns gradually evolving towards investing rather than holding the physical gold.

The broader outlook for bullion remains supported by central bank diversification away from fiat assets and persistent fiscal imbalances. Short-term volatility offers an opportunity for gradual accumulation, with a gold allocation of 8-15 per cent for portfolio stability.

From a broader perspective, gold continues to be supported by persistent global uncertainties, including fiscal imbalances, geopolitical tensions, and ongoing diversification by central banks away from fiat assets.

“Short-term volatility, driven by shifting interest rate expectations and liquidity conditions, should be viewed as an opportunity for gradual accumulation rather than a deterrent. For retail investors, maintaining a gold allocation of 8-15% remains a prudent strategy for portfolio stability. Additionally, this year presents a compelling case to include silver as a tactical allocation,” the report noted.

As per the Kotak report, on the MCX, gold has rebounded about 30 per cent from its March lows to trade above Rs 1,50,000. While technical resistance stands between Rs 1,60,000 and Rs 1,75,000, the underlying trend for bullion remains positive as the festival begins.

Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. KraneShares offers innovative investment solutions tailored to three key pillars: China, Climate, and Uncorrelated Assets. Our team is determined to provide industry-leading, differentiated, and high-conviction investment strategies that offer access to key market trends. Our mission is to empower investors with the knowledge and tools necessary to capture the importance of these themes as an essential element of a well-designed investment portfolio.

Patient engagement plays a vital role in preventive care and achieving improved health outcomes, especially within the Asia-Pacific region. While healthcare has traditionally been reactive, modern medicine emphasizes the need for proactive participation.

Cultural factors significantly influence a patient’s willingness to interact with healthcare systems, and many Asia-Pacific nations are shifting from paternalistic models to patient-centric approaches.

This shift fosters trust, encourages early screenings, and improves adherence to medical advice, ultimately leading to longer, healthier lives and reduced healthcare costs. Enhanced engagement requires building trust and fostering deeper patient-provider relationships.

• Patient engagement is central to healthcare improvement in the Asia-Pacific region, especially for preventative care and better outcomes.
• Traditional reactive models are shifting toward proactive, patient-centric approaches.
• Cultural factors play a major role in how patients interact with healthcare systems, influencing trust and participation.
• Moving away from paternalistic models fosters stronger patient-provider relationships, encourages early screenings, and improves adherence to medical advice.
• Benefits include longer, healthier lives and reduced healthcare costs, driven by trust and active involvement.
• Building trust and deeper relationships between patients and providers is essential to sustain engagement.

Why patient engagement matters in Asia-Pacific

While the ability to engage with the healthcare sector is determined by the availability, accessibility, and efficiency of healthcare systems and infrastructure, people’s willingness to engage with them is tied to culture, trust and beliefs.

In most cases, the challenges in healthcare are seen as access issues – a measure of the supply or availability of healthcare resources – and therefore receive the bulk of stakeholder attention. But in fact, simply making resources available cannot solve the dilemma most health systems face today, of growing patient populations, higher costs as well as insufficient resources.

This is where patient engagement becomes critical. Asia-Pacific bears much of the global infectious disease burden, such as tuberculosis, HIV, malaria, hepatitis and diarrhoeal diseases, while witnessing a rise in non-communicable diseases such as cardiovascular diseases, diabetes and various cancers.

Greater patient engagement creates demand for resources or services available within the health system earlier rather than later. Providing them encourages patients to have an interest in, commitment to and reliance on healthcare resources. All of this in turn helps prevent the onset of serious illnesses, increases the quality and length of patients’ lives, lowers the long-term cost of healthcare, and alleviates the associated economic burden in a given society.

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Mumbai: Wipro led the losers on the Nifty on Friday, coming under selling pressure after its March-quarter earnings missed expectations, with even a ₹15,000 crore buyback failing to lift sentiment.

The IT major had announced the buyback at a 19% premium to its previous closing price of ₹210 on Thursday. But the move did little to enthuse investors, with the stock falling as much as 4% earlier in the day. It ended at ₹204.30, down 2.8%.

Brokerages said that the effective benefit of the share buyback to shareholders could be limited, with the premium translating into less meaningful upsides.

India’s fourth-largest IT services company posted a 2% decline in consolidated net profit at ₹3,502 crore for the March quarter from the same period a year ago.
Most brokerages struck a cautious note. Goldman Sachs flagged a weaker-than-expected performance and said guidance indicates continued revenue contraction in the near term.

“While Wipro’s margin delivery has been strong, we expect revenue headwinds to translate into a near-term subdued EBIT margin profile,” said the brokerage in a client note. “We see limited signs of Wipro’s revenue underperformance gap closing with peers in the near term, particularly in a subdued macro environment.”
Kotak Institutional Equities said the company continues to lose ground to peers, with deal wins yet to translate into meaningful growth and the gap with competitors remaining wide. “We retain a cautious stance despite cheap valuations, given continued underperformance,” it said.