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Bank NIMs may shrink by 30 bps in FY26 on loan repricing: Fitch Ratings

Bank NIMs may shrink by 30 bps in FY26 on loan repricing: Fitch Ratings

Indian banks are likely to see a 30 basis points (bps) contraction in their net interest margins (NIMs) in the current financial year (FY26), as 45 per cent of loans in the system are repriced downward immediately. This reflects the transmission of repo rate cuts to borrowers, according to Fitch Ratings.
The agency estimated that system-level NIMs for Indian banks stood at 3.0 per cent in the financial year ended March 2025 (FY25).
Banks, especially for retail loans, price their offerings by linking them to external benchmarks such as the repo rate. When the benchmark rate changes—either upward or downward—lenders promptly adjust floating loan rates. Since February 2025, the Reserve Bank of India (RBI) has reduced the policy repo rate by 100 basis points to 5.5 per cent and taken steps to inject liquidity into the system.
In a statement, the rating agency said: 'Surplus liquidity conditions will likely accelerate the decline in the cost of fresh deposits. Nevertheless, we expect a 30bp contraction in margins in the financial year ending March 2026 (FY26), as 45 per cent of sector loans reprice downward immediately, without material improvement in the share of low-cost deposits.'
However, margin pressures are expected to moderate in FY27 as deposit costs ease, aided by lower cash reserve ratio (CRR) requirements, it added.
As a step to protect margins, both private and public sector banks have cut interest rates on savings and term deposits amid a surge in liquidity surplus and subdued credit growth. The country's largest bank, State Bank of India, has reduced term deposit rates three times in the current fiscal. The cumulative reduction for short-term deposits is about 60 basis points. Additionally, it has lowered the interest rate on savings deposits by 20 basis points.
Fitch said it expects funding and liquidity conditions to remain sensitive to changes in the central bank's liquidity stance and shifts in retail savings. While lower interest rates are likely to support asset quality, significantly higher loan growth could raise risks—though these may be offset by improved risk pricing, the agency noted.
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Visitors to Chitradurga fort find digital hurdle difficult to breach
Visitors to Chitradurga fort find digital hurdle difficult to breach

Deccan Herald

timea minute ago

  • Deccan Herald

Visitors to Chitradurga fort find digital hurdle difficult to breach

Hubballi: A section of visitors to the historical Chitradurga fort either return without seeing the legendary 'Obavvana kindi' or argue with guards at the gate to gain free entry as self-ticketing (by scanning QR code) fails to issue tickets due to poor internet connectivity and lengthy process of uploading details on the ASI-pay ministry of culture, under which the Archaeological Survey of India (ASI) protected monument comes, has launched self-ticketing only system across India to minimise deployment of human resources at ticket counters, reduce operation cost (purchase of ticket rolls and vending machines) and reduce queue fort is one of the 25 monuments across India to pilot this initiative. However, forget the benefits, visitors to the fort are facing hardships..A security guard at Chitradurga fort said seven out of 10 attempts fail due to poor takes at least 8-10 minutes for each transaction to complete as visitors have to fill in their details along with uploading identity proof and mobile numbers on the ASI-pay app..'Many visitors don't carry smart-phones or do not have phone-pay/G-pay. The network coverage at the fort is poor. So, it becomes very difficult to manage the crowd,' said another many as 16 centrally protected monuments in Karnataka have entry them, two monuments — Chitradurga fort and Tipu Sultan palace in Bengaluru — allow visitors only under self-ticketing have to scan a QR code placed at the entry gate via digital payment apps and buy the 25 monuments selected by ASI across India for this pilot project, two are in ASI intends to implement self-ticketing system across all 250 centrally protected ticketed monuments in the country..A senior ASI official said the key main intention of the Ministry of Culture to implement ASI-pay app is to give Indian visitors Rs 5 discount and foreign visitors Rs 50 multiple ASI officials and guides at Hampi and Vijayapura informed DH that the app, instead of helping visitors, was resulting in hardships..'Earlier, we used to deploy two staff to issue tickets at Vijayapura monuments. Now, with the government insisting on self-ticketing, we are deploying five staff on weekends to help tourists,' said a Dharwad circle officer of app has also reduced mass booking of tickets. Only five persons can book a ticket per a guide at Hampi, says visitors are facing problems while booking tickets at Lotus Mahal and Vittala temple complex due to poor network coverage..'A majority of visitors buy tickets at the counter though they are a bit costlier than booking through QR scanning method,' he says and adds the process should have been as simple as making a digital ASI officer at Hampi circle said the complaint had been brought to the notice of higher-ups..'The network issue wasn't brought to our notice, we will look into it,' he says..A senior officer in Bengaluru circle, under which Chitradurga fort and Tipu Sultan palace come, says they are just following orders from the ministry of culture..'We have been asked to issue tickets at these monuments only via QR code scanning. Officials in Delhi or regional directors can take a call on reactivating booking counters,' he says.

Free Trade or Colonial Bias? After India-UK FTA, Homegrown Liquor Makers Accuse British Market Of Discriminating Against Indian Brands
Free Trade or Colonial Bias? After India-UK FTA, Homegrown Liquor Makers Accuse British Market Of Discriminating Against Indian Brands

India.com

timea minute ago

  • India.com

Free Trade or Colonial Bias? After India-UK FTA, Homegrown Liquor Makers Accuse British Market Of Discriminating Against Indian Brands

New Delhi: The ink was barely dry on the India-UK Free Trade Agreement (FTA) when a new unease began brewing, not in trade offices, but in the distilleries of India. A growing number of Indian liquor companies say they are feeling left out and locked out. While the FTA has opened India's gates wider for British gin and Scotch with reduced import duties, the doors to the U.K. market, they claim, remain unfairly barricaded for Indian-made spirits. At the center of the anger is the Confederation of Indian Alcoholic Beverage Companies (CIABC), a body that speaks for India's local liquor manufacturers. According to its Director General Anant S Iyer, what India removed in tariff walls, the United Kingdom has maintained in 'non-tariff barriers', rules that may not show up in price charts but block access all the same. 'The United Kingdom and even the European Union (EU) do not allow fair imports of most Indian-Made Foreign Liquor (IMFL) products into their markets due to non-tariff barriers related to maturation and ingredients. We only wish that the Indian government had stood firm on the issue of non-tariff barriers,' he said. The bone of contention is the UK's strict definition of what can be sold as whisky. The British standard mandates that whisky must be matured for a minimum of three years. This rule is applied to both domestic and imported spirits. But Iyer says what works in cold European cellars does not work in the Indian climate. 'In India, the maturation is much faster due to the tropical climate. If we keep it for three years, we lose almost one-third of the spirit to evaporation. That is a financial loss. It also changes the flavour profile. It is a punishment for making whisky in a warmer land,' he explained. Because of the three-year rule, Indian whiskies that mature faster due to heat are disqualified from calling themselves 'whisky' under British law. Instead, they must be labelled as 'Indian spirits', a description that, Iyer says, cuts them off from mainstream whisky shelves and consumer attention in the United Kingdom and Europe. 'We want to be allowed to call it Indian Whisky or Indian Rum or Indian Brandy. Let consumers decide. Let the market decide. Right now, we are kept out simply because we do not age our spirits in cold basements,' he added. The CIABC has now urged the Indian government to actively pursue the matter with the United Kingdom. They argue that without reciprocal access for Indian products, the billion-dollar export vision for the Indian liquor industry will remain out of reach. 'The government has set an ambitious target of achieving $1 billion in exports from the Indian alcobev (alcoholic beverage) industry by 2030. However, without ensuring proper market access, it will be difficult to meet this target. Though Indian whiskies, rum, gins, wines, etc. have been winning accolades globally, the lack of removal of non-tariff barriers and absence of reciprocal market access will make this export target hard to achieve,' Iyer said. There is also growing concern about what is flowing into India. While British spirits are now allowed in at lower duties, Indian manufacturers fear that Scotch whisky and other bottled-in-origin (BIO) liquors may soon dominate Indian shelves by being routed through third countries at cut prices, hurting the premium Indian market before it even matures. To counter this, the CIABC has recommended that the Indian government fix a Minimum Import Price (MIP) on such foreign products. 'The government has incorporated MIP in the India-UK FTA on rum, brandy and other liquor products. The only exception on this count being Scotch Whisky/other whiskies/Gin originating from the United Kingdom,' Iyer added. He urged the government to monitor billing data and use technology to trace each bottle from port to shelf. 'We hope the government will ensure that Scotch whisky and other BIO spirits are not dumped in India at low import prices or routed through any other country at cheaper rates. This will hurt the growth of premium and luxury Indian brands,' he said. For now, India's liquor makers are pouring their hopes into diplomatic channels. Their demands include recognition, fairness and a level playing field. 'We do not want favours. We just want the right to sell our products under the names they deserve,' Iyer concluded.

Stock to buy: Anand Rathi predicts Apollo Micro Systems' share price to rise 25% in 3 months. Here's why
Stock to buy: Anand Rathi predicts Apollo Micro Systems' share price to rise 25% in 3 months. Here's why

Mint

timean hour ago

  • Mint

Stock to buy: Anand Rathi predicts Apollo Micro Systems' share price to rise 25% in 3 months. Here's why

Stock to buy: Indian brokerage firm Anand Rathi Investment Services disclosed its bullish stance on Apollo Micro Systems shares, predicting a 25% upside in the upcoming three-month period. In the stock report, Anand Rathi analysts highlighted that the shares of the Aerospace and Defence equipment maker had undergone a 'significant correction' after peaking near the ₹ 221 levels. They also stated that the stock is now moving 'within its Ichimoku cloud,' aligning with the previous breakout zone. 'The stock is moving within its Ichimoku cloud, aligning with the previous breakout zone, while the 100-day Exponential Moving Average (DEMA) also corresponds closely to this area. Fibonacci retracement levels between 38.2% and 50% further indicate potential support, suggesting a base formation near the 165-175 range,' said the analysts at Anand Rathi. On the technical front, the shares' Relative Strength Index (RSI) is hovering over the 40 support mark, which likely indicates a potential stabilisation. 'Additionally, the daily Relative Strength Index (RSI) is around the crucial 40 support mark, signalling possible stabilisation,' they said. Apollo Micro Systems Ltd (APOLLO): Buy in the range of ₹ 165-175; Target Price at ₹ 210; Stop Loss at ₹ 150 (on a daily closing basis). 'Given this technical setup, investors might consider buying or accumulating shares within the 165-175 zone. The upside target is projected at 210, while a stop-loss below 150 on a daily closing basis is recommended to manage risk. This outlook highlights key support and resistance levels that traders should monitor closely before making investment decisions,' recommended Jigar Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, in the stock report. Apollo Micro Systems shares closed 0.29% higher at ₹ 172.30 after Friday's stock market session, compared to ₹ 171.80 at the previous market close. The brokerage firm released its bullish stance on the company after market operating hours last week, on 25 July 2025. Shares of the Aerospace and Defence equipment maker have given stock market investors more than 1,280% returns on their investment in the last five years and over 39% gains in the last one-year period. On a year-to-date (YTD) basis, the stock has jumped 40.87% in 2025 but are currently trading 4.7% lower in the last five market sessions on the Indian stock market. According to data collected from the BSE website, Apollo Micro Systems shares hit their 52-week high at ₹ 221.40 on 24 June 2025, while the 52-week low was at ₹ 88.10 on 23 October 2024. The shares are currently trading under their year-high levels. The company's market capitalisation (M-Cap) stood at ₹ 5,280.82 crore as of the stock market close on Friday, 27 July 2025. Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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