Despite steady loan growth, the banking sector is expected to report subdued margins in the quarter ending June 2024 (Q1FY25), driven by high demand for deposits amidst tight liquidity conditions.
According to Bloomberg analysts, listed banks are forecasted to see a 14.5 per cent year-on-year (Y-o-Y) increase in net profit.
The estimates showed that the banks’ net interest income (NII), revenues from interest minus interest expenses, may grow 11.9 per cent Y-o-Y.
Sequentially, NII may contract by 4.8 per cent on rising cost of deposits, while net profit is likely to come down by 6 per cent.
Analysts believe that margin
First Published: Jul 04 2024 | 8:25 PM IST
