With intense competition for deposits among Indian banks, the return on assets (ROAs) is expected to moderate from 1.1 per cent in FY23 to 0.8-1.0 per cent in 24-30 months, said a Mckinsey update on the banking sector. Peeyush Dalmia, senior partner, banking practice in India, Mckinsey, said while banking ROAs have been healthy, multiple trends could exert downward pressure on profitability over three-five years. Click here to follow our WhatsApp channel The slower deposit growth, increasing proportion of credit-tested customers, fee income decline and rising operational expenses may impact ROAs. The structural re-allocation of savings away from deposit products may lead to muted…
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After reaching peak, banking profitability to moderate on deposit challenge | Banking
