RBI's potential 50 bps rate cut will have 15-20 bps impact on bank's net interest margins: Nomura

New Delhi [India], October 4 (ANI): If the Reserve Bank of India goes for a potential 50 basis point (bp) cut in the repo rate, it is expected to negatively impact the net interest margins (NIMs) of large private banks by 15-20 basis points, highlighted a report by Nomura.

The report added that this is mainly because 30-60 per cent of their loan portfolios are directly linked to the repo rate or other external benchmarks.