Indian banks are set for a "decisive profitability inflection point" as net interest margins (NIMs) begin to recover after several quarters of compression, according to a latest sector report by Nomura.
The profitability of banks is expected to improve in the coming quarters, driven by improved advances growth and lower interest expenses, according to a report by Systematix Research.
Credit costs in Indian banks are expected to continue in declining trend in the second half of the current financial year 2025, though near-term slippages are likely to remain elevated, according to a report by global financial services firm UBS.
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.
The net interest margins (NIMs) of banks in India are expected to improve after the third quarter of the current financial year 2026 (3QFY26), according to a report by Motilal Oswal.
The Indian banking sector is witnessing a steady pickup in deposit growth, but banks are likely to report a decline in their net interest margins (NIM) in the first quarter of FY26, according to a report by Phillip Capital.
The net interest margins (NIMs) of banks in the country are expected to come under pressure in the first half of the financial year 2025-26 (H1FY26), according to a recent report by Motilal Oswal.
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.
The net interest margins (NIMs) of microfinance institutions (MFIs) are expected to shrink in the financial year 2025 ended in march, due to emerging challenges in asset quality and declining yields, according to a recent report by Mavenark Advisors.
NIMs at the six largest private and state-owned banks have been under stress as deposit rates caught up with lending rates over the past few quarters. However, strong credit demand has helped these banks maintain growth.
The operating profit for the quarter stood at Rs23,551 crore, marking a 15.81 per cent YoY increase. Additionally, the Net Interest Income (NII) grew by 4.09 per cent YoY to Rs41,446 crore, while the Return on Assets (ROA) improved to 1.04 per cent, rising 42 basis points (bps) YoY. The bank
The Reserve Bank of India's (RBI) decision to cut the Cash Reserve Ratio (CRR) is expected to provide marginal support to the Net Interest Margins (NIMs) of banks, according to a report by Axis Securities.