New Delhi, Jan. 29 -- Indian banks are facing margin pressure as loan growth slows amid high interest rates, according to a report by S&P Global Market Intelligence.

The report highlighted that the aggregate loan growth of six of India's largest banks--both private and state-owned--is expected to decline to 12.3 per cent in the fiscal year ending March 31, 2025. This is a sharp slowdown from the 22.5 per cent growth recorded in the previous fiscal year.

It said, "Indian banks face margin pressures as loan growth slows amid high interest rates... Net interest margins at most lenders are expected to edge lower, the estimates show. Weaker NIMs are expected as deposit rates catch up and monetary easing looms".

However, despite the slowdown...