# Indian banks are expected to post a stable March quarter, with strong asset quality and loan growth.

*business · news · 2026-04-13 · Moneycontrol*

## Key points

- Indian banks' low-cost CASA deposits have fallen to a two-year low as of December quarter.
- Deposit growth has plateaued and remains heavily urban-skewed due to a shift in household savings.
- Banks are increasingly relying on bulk and term deposits, raising funding costs and pressuring margins.
- Transmission of RBI's 125 bps rate cut is incomplete, with only 90 bps reflected in lending rates.
- Several major banks, including HDFC and ICICI, are expected to report flat or declining NIMs for Q4.

**Companies:** HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, State Bank of India, Bank of Baroda, Union Bank of India, Bank of India
**Countries:** India

[Read the full story on Moneycontrol](https://www.moneycontrol.com/news/business/banks/banks-to-face-funding-cost-pressure-in-q4-margins-to-remain-rangebound-13887277.html)

---

Canonical: https://newsio.io/n/a6f88df7-b8fa-412f-a687-7f30b6a29d28/indian-banks-are-expected-to-post-a-stable-march-quarter-with-strong-asset-quali
Summarized by Newsio from Moneycontrol. https://newsio.io/how-it-works