Amit Balooni
Internal

Do Banks benefit in rising interest rate regime?

An increasing interest rate regime does bring temporary benefit to banks as they tend to raise lending rates faster than deposit rates. However, in the mid to longer term the NIM normalises.

But more importantly it helps smaller players with high Cost of Funds (COF) as the cut throat teaser rate campaigns from larger players subside during an upward interest cycle.
#banking

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