Rising bond yields may slow bank profit growth in September quarter
In short
Banks in the Nifty 50 are expected to post 11.5% higher net interest income in the September quarter, while net profit may rise about 10%. The reports say the RBI’s FCNR-B deposit swap scheme is helping deposits, but higher bond yields may hold back profits.
This matters for banks such as Axis Bank and Kotak Mahindra Bank, which are expected to do well. The numbers are forecasts, so the final results are still unknown.
What the reporting says
Nifty 50 banks are forecast to post an 11.5% rise in net interest income and about 10% profit growth in the September quarter, according to publisher summaries. The notes say hardening bond yields may weigh on profits even as deposit growth is helped by the RBI’s FCNR-B deposit swap scheme, and Axis Bank and Kotak Mahindra Bank are expected to show strong growth. The immediate outcome is still only a forecast, not a reported result.
Why it matters
For the September quarter, Nifty 50 banks are forecast to report 11.5% growth in net interest income and about 10% profit growth, according to publisher summaries. The reports link deposit support to the RBI’s FCNR-B deposit swap scheme, while warning that hardening bond yields could limit profit momentum. Axis Bank and Kotak Mahindra Bank are singled out as likely beneficiaries, but these are forecasts rather than reported results.