New Delhi, June 11 -- The Indian banking and financial services industry (BFSI) is currently experiencing a dynamic period characterised by moderate credit growth expectations alongside evolving profitability pressures, according to a report by Boston Consulting Group (BCG).

The report further adds that, while certain segments, such as mutual funds and insurance, demonstrate robust upward trajectories, the overall credit growth for the year has seen a slowdown, even as deposit growth remains steady.

Additionally, profitability within the banking sector is facing headwinds. Net Interest Margins (NIMs) are projected to be under pressure as repo-linked loans reprice due to rate cuts, compelling banks to lower deposit rates.

However, an el...