RBI hikes repo rate by 40 bps: Analysts see muted impact on banks' NIM, PAT

Non-bank finance companies (NBFCs), however, may feel more heat, except those engaged in mortgage financing

RBI hikes repo rate by 40 bps: Analysts see muted impact on banks' NIM, PAT
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Nikita Vashisht New Delhi
The move to hike repo rate and cash reserve ratio by the Reserve Bank of India (RBI), analysts said, may not have a significant negative impact on banks as they will benefit from higher yields on the lending portfolio that are linked to external benchmarks. Non-bank finance companies (NBFCs), however, may feel more heat, except those engaged in mortgage financing.
 
"A pick-up in advances growth, improving asset mix and continued hikes in policy rates will drive higher yields for banks over fiscal 2022-23 (FY23). However, a rise in deposit rates and any material change in demand environment have to be

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First Published: May 05 2022 | 12:40 PM IST

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