Good run for banks, but for how long?

Barring few, most banks have shown a drop in the low-cost CASA. Ditto their net interest margin. The credit quality is holding up, but some banks have reported fresh slippages

The combined net profits of 32 listed private and public sector banks (PSBs) were up 40.56 per cent in FY23 to close to Rs 2.29 trillion, with both sets of banks crossing the Rs 1 trillion mark in posting net profits and a few even recording their highest-ever net profits.

While celebrating the phenomenon some months ago, most of us were sceptical about the future of the dream run. We were focusing on the string of challenges ahead.

For instance, with a bulk of the deposits being repriced, the net interest margin (NIM), or the difference between what the banks