According to Equirus Securities, the Indian banking sector's Q4 results indicate that net interest margins (NIMs) have likely bottomed out, accompanied by an improvement in business momentum. The brokerage expects repo rate hikes in the second half of FY27, which could support NIMs for private banks. While there is reasonable upside potential across large private banks, Axis Bank is preferred within this group. Among mid-sized private banks, Karur Vysya Bank and DCB Bank are favored. These insights reflect cautious optimism about the sector's performance amid evolving monetary policy conditions in India. Equirus Securities expects repo hikes in the second half of FY27, which would be NIM supportive for private banks.