However, volumes will be impacted in the subsequent quarters due to the exit of HDFC following its merger with HDFC Bank, Icra Ratings said in a report.
Deals are set to revive slowly as companies and funds watch out for easier macroeconomic conditions, dealmakers said.
Indranil Pan, chief economist at Kotak Mahindra Bank expects a 25 basis point rate cut by the Reserve Bank of India (RBI) its next January policy meet. However, he says, some of the macroeconomic parameters are not yet giving signals that the system is ready for a cut.