Union Bank's NIMs hitting 2.64% highlights a critical challenge: repo rate transmission isn't...

Union Bank's NIMs hitting 2.64% highlights a critical challenge: repo rate transmission isn't symmetrical. Banks pass on cuts to borrowers faster than they can reduce deposit costs.

This creates sustained pressure on bank profitability. For businesses, expect banks to find other ways to protect margins – perhaps through increased fees or a push for longer-term fixed-rate products. It signals a shift in credit pricing dynamics.

https://bfsi.economictimes.indiatimes.com/articles/union-bank-of-india-faces-margin-pressure-despite-strong-growth/130552963