New Delhi, Feb. 21 -- Indian banks are facing renewed pressure on their net interest margins (NIMs) as interest rates are expected to decline following the Reserve Bank of India's (RBI) decision to cut its benchmark rate for the first time in nearly five years.

According to S&P Capital IQ, Net Interest Margins (NIM) at the six largest private and state-owned banks have been under stress as deposit rates caught up with lending rates over the past few quarters. However, strong credit demand has helped these banks maintain growth.

In the October-December quarter of FY24, five out of six major banks saw loan growth of over 12 per cent, boosting their net income year over year, according to S&P Global Market Intelligence data.

On January 27...