Hardening bond yields to weigh on bank profits in September quarter

Hardening bond yields are expected to weigh on bank profits in the September quarter, with Nifty 50 banks forecasted to see a 11.5% rise in net interest income but net profits growing more slowly at around 10%. This growth is supported by robust capital inflows from the RBI's FCNR-B deposit swap scheme, bolstering deposit growth. Leading banks like Axis Bank and Kotak Mahindra Bank are likely to show substantial profit growth this quarter.