Indian banks' ROA to slip to ~1.2% on lower treasury income
Crisil projects the average return on assets for Indian banks to fall to 1.15‑1.2% this fiscal, down from 1.3% last year. The dip is driven by a 5‑10 bp drop in treasury income and a similar rise in pre‑emptive provisioning ahead of the new ECL framework, while net interest margins stay around 2.9%.