The widening of these margins can be attributed to recent interest rate hikes undertaken by the Reserve Bank of India (RBI) in order to tame inflation. In addition to that, higher policy rates and favorable funding structures might also contribute to the larger margins, the report said. This, in turn, will help to generate higher returns on assets or ROA.source https://economictimes.indiatimes.com/industry/banking/finance/banking/indian-banks-to-witness-surge-in-margins-in-fy23-moodys/articleshow/92493158.cms
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