Banks may face NIM compression amid slower credit growth
- Posted on October 14, 2024
- By Financial Express
- 1 Views
Banks may face NIM compression amid slower credit growth
Banks are predicted to experience moderate earnings growth in Q2 as credit growth slows and net interest margins decline. Higher cost of funds is expected to decrease NIMs by 5-10 bps, resulting in a shift towards term deposits. While deposit growth has improved, the industry’s CASA ratio remains strained.
