In FY26, private banks' return on equity moderates amid NIM pressure, treasury losses

This report covers key India-focused updates related to loans, EMI, interest rates and banking. In FY26, private banks' return on equity moderates amid NIM pressure, treasury losses Private banks saw their profitability dip in FY26. Net interest margins faced pressure as loan rates adjusted faster than deposit rates in a falling interest rate environment. Treasury income also declined. This led to a moderation in return on equity for major lenders like HDFC Bank, Axis Bank, and ICICI Bank. Experts anticipate these challenges to persist in FY27. Listen to this article in summarized format (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)