Business

Fitch Ratings Forecasts 10 Basis Point Drop in Indian Banks’ NIMs by 2025-26

Published

1 year ago

February 13, 2025

According to a report by Fitch Ratings, Indian banks are expected to see a decline in their net interest margins (NIMs) by an average of 10 basis points in the 2025-26 fiscal year. This decrease is attributed to interest rate cuts from the Reserve Bank of India (RBI), although the impact will be mitigated by the central bank’s efforts to ease liquidity conditions.

Recently, the RBI initiated a cycle of rate cuts, reducing its key policy rate by 25 basis points to 6.25 percent. The central bank indicated that it will continue to monitor and proactively manage liquidity measures, especially as the banking system has been facing a liquidity deficit for the past two months.

Fitch Ratings noted that the immediate repercussions will be felt in floating loans linked to external benchmarks, including housing and small and medium enterprises (SME) loans. The effects will also extend to new loans in an environment of declining policy rates.

During the period from April to September, Indian banks maintained a healthy NIM of 3.5 percent. However, this reflects a decrease from approximately 3.6 percent in fiscal 2024, primarily due to the upward repricing of deposits as liquidity conditions tightened. Fitch believes that NIMs in the sector will trend towards a long-term average of around 3 percent, facing challenges from slower loan growth and reduced yields.

Non-bank financial institutions are also likely to experience pressure on their NIMs in competitive segments, such as near-prime urban housing and commercial loans. While the transfer of rate changes to loan rates is expected to occur immediately, analysts predict a short-term impact on banks’ NIMs, as the repricing of deposits tends to lag behind.

Additionally, Fitch mentioned that banks may receive some temporary relief due to delays in implementing higher deposit run-off rates and anticipated credit losses, which are expected to occur after the 2025-26 fiscal year.

Business

Good News for Milk Producers in Chikkaballapur – 50 Paise Increase per Litre

Published

3 days ago

March 8, 2026

Namma Kudla

Chikkaballapur: The Chikkaballapur Milk Union (Chimul) has announced good news for milk producers in Chikkaballapur district. The union has decided to increase the milk procurement price by 50 paise per litre, which will benefit dairy farmers in the district.

Earlier, on January 1, Chimul had increased the price by Rs.1 per litre as a New Year benefit to farmers. Now, the union has announced an additional 50 paise increase.

With this latest revision, dairy farmers will receive Rs.36.40 per litre for milk. The 50 paise increase will remain in effect until the end of May.

Chimul President Manjunath Reddy told Public TV that the union will review its profits and may continue the price increase in the future based on financial performance.

The decision is expected to provide some relief and encouragement to dairy farmers in Chikkaballapur district.

Business

Key Rules for Transferring Inherited Property

Published

3 weeks ago

February 15, 2026

Namma Kudla

Business : After the death of parents, legal heirs are eligible to inherit their property. However, certain procedures must be followed before the transfer is completed in India.

Heirs must file the deceased person’s income tax return for the year of death and pay any pending taxes. There is no estate tax on inherited property in India, but any income earned from it, such as rent or interest, is taxable.

If the property is sold, capital gains tax will apply based on the difference between the original purchase price and the selling price. Clearing any outstanding loans linked to the property is also mandatory.

Important documents such as the will, succession certificate, death certificate, and property valuation report should be kept ready to ensure a smooth transfer process.

Business

Does Bank Open Or close on February 14 in India?

Published

4 weeks ago

February 13, 2026

Namma Kudla

New Delhi: Banks across India will remain closed on February 14 as it falls on the second Saturday of the month. The holiday is part of the official schedule released by the Reserve Bank of India, which requires banks to shut on the second and fourth Saturdays and all Sundays.

Customers are advised to finish important financial tasks early to avoid last-minute trouble. Every year, the RBI publishes a holiday calendar that lists national holidays, regional festivals, and other scheduled closures.

In February, banks in some states will also close for regional occasions such as the birth anniversary of Chhatrapati Shivaji Maharaj and Statehood Day in Mizoram and Arunachal Pradesh.

Even though bank branches will remain closed, digital services like ATMs, internet banking, and UPI will continue to work normally.