Shares of India’s banks may be set for a pullback, according to Vikas Gattani, chief investment officer at Singapore-based fund manager Progress Asia Capital and Advisors Pte. “In the absence of any sharp uptick in banking credit and a major redressal in the banks’ balance sheets via capital injection or otherwise, we fear that this sector could severely correct if the earnings do not keep pace with expectations,” Gattani wrote in a letter to investors seen by Bloomberg. The S&P BSE India Bank Index, a gauge of the nation’s largest lenders, reached a record high on Aug. 1. Indian stock...