Several Indian banks are expecting their net interest margins (NIMs) to improve in the second half of the current financial year after reporting a weak performance in the April-June quarter, according to a report by S&P Global.
Declining interest rates are not favourable for banks' net interest margins in the short term. According to a report by PhillipCapital, the net interest margins (NIM) of banks are going to moderate in FY25 and FY26, before rebounding in FY27.