NEW DELHI: The profitability of banks is expected to improve in the coming quarters, driven by improved advances growth and lower interest expenses, according to a report by Systematix Research.

The report stated that bank profitability is likely to be supported by four key factors. It stated, “We expect the profitability for the banks to improve, driven by improved advances growth, lower interest expences due to ongoing deposit repricing cycle, benefit of lower CRR requirement and normalisation of unsecured segment slippages supported by lower MFI slippages”.

The report also noted that Net Interest Margins (NIMs) were expected to be broadly lower sequentially in 2QFY26 and to bottom out if there were no further rate cuts. This scenario has largely played out, although a few banks have s

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