Banks More Worried About Geopolitical Uncertainty The Cost Of Capital
28 Oct 2026 9:25 PM IST28 Oct 2026 9:25 PM IST
A total of 22 banks, comprising public sector banks, private sector banks and foreign banks: Reports
public sector banks— DC File
MUMBAI: Geopolitical risks and supply-chain disruptions are seen as the biggest impediment to a broad-based revival in private-sector capital
expenditure, cited by around three-fifths of respondents, followed by global economic uncertainty and, to a lesser extent, a weak demand
outlook according to the latest FICCI-IBA Bankers’ Survey released on Wednesday “This suggests that investment confidence and visibility over the
operating environment, rather than the cost of capital alone, remain critical to unlocking a sustained private capex cycle,” said the
survey.
A total of 22 banks, comprising public sector banks, private sector banks and foreign banks, participated in this round. Collectively,
these banks account for more than three-fourths of the total banking assets in the country.
From a strategic perspective, deposit mobilisation and liability franchise strengthening is expected to receive the greatest management attention in FY2027, followed by AI and data-driven banking transformation and, third, cybersecurity and operational resilience.
“Retail and MSME credit growth is an important, though comparatively secondary, priority. This reflects the sector’s dual emphasis on
reinforcing balance-sheet fundamentals while accelerating technology-led transformation. Public Sector Banks rank AI-led
transformation first, while Private Banks place the greatest emphasis on deposit mobilisation,” said the Survey.
outlook according to the latest FICCI-IBA Bankers’ Survey released on Wednesday “This suggests that investment confidence and visibility over the
operating environment, rather than the cost of capital alone, remain critical to unlocking a sustained private capex cycle,” said the
survey.
A total of 22 banks, comprising public sector banks, private sector banks and foreign banks, participated in this round. Collectively,
these banks account for more than three-fourths of the total banking assets in the country.
From a strategic perspective, deposit mobilisation and liability franchise strengthening is expected to receive the greatest management attention in FY2027, followed by AI and data-driven banking transformation and, third, cybersecurity and operational resilience.
“Retail and MSME credit growth is an important, though comparatively secondary, priority. This reflects the sector’s dual emphasis on
reinforcing balance-sheet fundamentals while accelerating technology-led transformation. Public Sector Banks rank AI-led
transformation first, while Private Banks place the greatest emphasis on deposit mobilisation,” said the Survey.
( Source : Deccan Chronicle )
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