Mumbai: The return on equity of several private sector banks moderated in 2025-26 as pressure on net interest margins and a fall in treasury income weighed on profitability, according to an analysis of investor presentations by banks.
Return on equity (RoE), a key profitability metric that measures earnings generated on shareholders' equity, came under pressure as banks saw compression in margins due to faster repricing of loans than deposits in a declining interest rate environment.
