For Quick Alerts
For Daily Alerts

Banks may get impacted as companies' margins remain under pressure: Nomura India

By Religare

Nomura India has said that the margins of corporate are expected to remain under pressure as they are unable to pass on the rise in input cost due to poor demand, which will have a negative impact on banks, said PTI report.

In a note, Nomura India said, "With weak demand constraining pricing power and input costs rising due to currency weakness, margins are likely to remain under pressure."

"Apart from hurting profitability, the trend will also lead to deterioration of credit quality for banks and hence worsen the employment and investment prospects," the report warned.


It, however, also noted that the depreciating rupee is not the only reason for the rise in input costs, saying the high interest rates are also a big factor and more so after the liquidity squeezing measures introduced by the RBI last month.

Both these factors will ultimately have a bearing on GDP growth, Nomura said, reiterating that it has cut its FY14 growth estimate to 5 per cent from the earlier 5.6 per cent.

Dion Global Solutions Ltd.

Read more about: banks nomura india corporates
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more