Cost of funds puts a squeeze on banks' H1 profit growth

Indian banks reported muted earnings in the first half of FY26, with net profits rising only 2.5% despite an 11.3% credit expansion. This was primarily due to a compression in net interest income as banks passed on policy rate cuts to borrowers while their cost of funds remained elevated. Private banks outperformed public sector banks due to higher other income.

from Economic Times https://ift.tt/4aFQXhB