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Weak Credit Growth And Rate Cuts to Squeeze Profit at India's HDFC, ICICI Banks

Weak Credit Growth And Rate Cuts to Squeeze Profit at India's HDFC, ICICI Banks

Bloomberg18-07-2025
India's top private-sector banks HDFC Bank Ltd. and ICICI Bank Ltd. could see profits come under pressure from loan growth at a three-year low and thinning margins driven by central bank rate cuts, as they report earnings this weekend.
Margins face pressure from the Reserve Bank of India's rate cuts — 100 basis points since the start of the year — and a reduction of the cash reserve ratio to boost liquidity and further reduce funding costs in order to buoy the economy.
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