CARE Ratings: Banks Cannot Protect NIM Beyond a Point

The banking system is fine with the foregoing credit growth and is ensuring that net interest margins are protected, Sanjay Kumar Agarwal, senior director at CARE Ratings, said.

- Shipra Petkar

"Right now, banks are trying to ensure that NIMs (net interest margins) are protected. They may be able to do it for a quarter or two months. Beyond that, I think the downward pressure on NIMs will start."