02-July-2026
Banking
 
Some Indian banks poised for interest margin gains as short-term funding costs fall
30-Jun-2026

Some Indian banks could see stronger interest margins in the July-September quarter as the central bank's measures boost rupee liquidity and reduce the cost of borrowing for funds that mature within a year, four bankers said. Certificates of deposit (CDs), which banks use to raise funds for up to one year, have seen rates plunge by up to 60 basis points over the past three weeks. The Financial Benchmarks India Ltd three-month CD reference rate fell to 6.65% last Friday from 7.25% on June 4. The Reserve Bank of India's moves to attract foreign currency inflows are expected to bring in billions of dollars, boosting liquidity, lowering funding costs and reducing reliance on CDs, a relatively expensive source of funding.

News Source:- https://economictimes.indiatimes.com/industry/banking/finance/banking/some-indian-banks-poised-for-interest-margin-gains-as-short-term-funding-costs-fall/articleshow/132067990.cms