NII, a key earning source for lenders, may show higher growth for private banks (24.4 per cent Y-o-Y) compared to public sector banks (PSBS) (12.2 per cent) in Q2FY24, according to a Bloomberg analyst's estimates.
Nitin Aggarwal, research analyst, Motilal Oswal, said while the focus is on NII, there will be pressure on interest margins due to factors like repricing of deposits.
In the current interest-rate cycle, banks benefited from immediate increase in lending rates in Q2. Later, a rise in deposit rates came with a lag, creating pressure on margins.
This story is from the October 07, 2023 edition of Business Standard.
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This story is from the October 07, 2023 edition of Business Standard.
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