finance AM market analysis — 2026-09-28

Bank earnings are giving a mixed signal this morning. Bandhan Bank and HDFC Bank both point to improving asset quality and steadier funding, with HDFC also showing supportive loan and deposit growth. That constructive company-level picture sits against a broader industry backdrop where deposit competition, thinner margins and credit growth quality remain live concerns across the sector.

Inflation is the other thread worth watching. UK price growth is still running above the Bank of England’s target, leaving little room for a straightforward easing path. In Japan, Bank of Japan policymakers are giving more weight to inflation risk, which raises the chance of a firmer policy stance there too. Together these keep the near-term rate outlook in major economies unsettled rather than resolved.

On balance, the evidence is mixed enough to warrant a cautious read. Individual bank fundamentals look somewhat better, but funding costs, lending discipline and diverging inflation pressures in the UK and Japan are the factors likely to shape the next leg of the story.