scorecardresearchIndian banks' margins are likely to rise at a faster rate: Moody's

Indian banks' margins are likely to rise at a faster rate: Moody's

Updated: 28 Jun 2022, 11:08 AM IST
TL;DR.
When interest rates rise, margin spreads of banks will widen as interest income from loans and investments rises faster than the interest expense paid to depositors as interest rates rise.
The Reserve Bank of India (RBI) has increased the policy repo rate by 90 basis points (bps), once by 40 bps in April and another by 50 bps.

The Reserve Bank of India (RBI) has increased the policy repo rate by 90 basis points (bps), once by 40 bps in April and another by 50 bps.