Archive · 31 Jan 2026
Banks' Q4 NIM Expected to Stay Range-Bound
Indian banks are expecting their net interest margins (NIM) to stay more or less the same in the last quarter of the fiscal year.
This is because of the recent interest rate cut by the Reserve Bank of India, which affects the interest rates on loans.
Banks are also trying to manage their deposits and loans to keep their profits stable.
Some banks, like Canara Bank, have seen a big increase in their profits due to higher income from fees and selling investments.
They are also focusing more on loans to regular people and small businesses to improve their profits.
Overall, banks are working to keep their profits steady despite changes in interest rates.
Banks' net interest margins (NIM) are expected to remain range-bound in Q4 due to the RBI's repo rate cut transmission, especially on MCLR-linked loans.
ICICI Bank's NIM stood at 4.30% in Q3, with expectations of it remaining range-bound due to repricing of external benchmarks and competition.
Federal Bank's NIM improved by 12 basis points to 3.18% in Q3, aiming to increase the share of low-cost CASA deposits and grow higher-yielding assets.
Canara Bank reported a 26% year-on-year rise in net profit to ₹5,155 crore in Q3, driven by higher fee-based income and gains from the sale of investments.
Canara Bank's NIM declined to 2.50% in Q3, with the bank focusing on retail, agriculture, and MSME advances to improve margins.
- Who
- Indian banks, including ICICI Bank, Federal Bank, and Canara Bank
- What
- Net interest margins (NIM) expected to remain range-bound in Q4
- When
- Q4 of the fiscal year
- Where
- India
- Why
- Due to the transmission of the RBI's repo rate cut, especially on MCLR-linked loans, and changes in deposit and lending strategies
- ICICI Bank's NIM
- 4.30% in Q3
- Federal Bank's NIM
- 3.18% in Q3
- Canara Bank's NIM
- 2.50% in Q3
- Canara Bank's Net Profit
- ₹5,155 crore in Q3
- Canara Bank's Interest Income
- ₹31,544 crore in Q3
- Canara Bank's Non-Interest Income
- ₹7,900 crore in Q3
- Canara Bank's Treasury Income
- ₹3,056 crore in Q3
- Canara Bank's Fee-Based Income
- ₹2,327 crore in Q3
