{"id":13082,"date":"2025-08-04T16:39:34","date_gmt":"2025-08-04T11:09:34","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=13082"},"modified":"2025-08-04T17:45:23","modified_gmt":"2025-08-04T12:15:23","slug":"banks-reassess-lending-us-tariffs-export-hit","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/banks-reassess-lending-us-tariffs-export-hit\/","title":{"rendered":"Impact of US Tariffs on Bank Lending Strategy"},"content":{"rendered":"<p data-start=\"800\" data-end=\"1030\">Indian banks are likely to re-evaluate their corporate and SME lending plans after the US imposed 25% tariffs on Indian exports. The move creates uncertainty for export-linked borrowers, delaying recovery in credit demand.<\/p>\n<h2 data-start=\"1032\" data-end=\"1061\">Credit Demand Already Weak<\/h2>\n<h3 data-start=\"1063\" data-end=\"1091\"><strong>Slowing Growth in FY26<\/strong><\/h3>\n<p data-start=\"1092\" data-end=\"1282\">Corporate and SME credit growth slowed to 6\u20139% YoY, down from 12\u201315% in late 2024. Lenders like Federal Bank and Bank of Baroda note no panic yet, but emphasize close monitoring.<\/p>\n<h3 data-start=\"1284\" data-end=\"1313\"><strong>Rise of Cheaper Funding<\/strong><\/h3>\n<p data-start=\"1314\" data-end=\"1471\">With the RBI cutting rates by 100 bps, corporates are shifting to bond and ECB markets for cheaper funds, affecting loan demand and bank margins.<\/p>\n<p>Also Read: <a href=\"https:\/\/www.niftytrader.in\/content\/trumps-tariff-may-dent-export-margins\/\">Trump\u2019s Tariff May Dent Export Margins<\/a><\/p>\n<h2 data-start=\"1473\" data-end=\"1500\">Pressure on Bank Margins<\/h2>\n<p data-start=\"1502\" data-end=\"1707\">According to CareEdge Ratings, public sector banks saw a 26 bps drop in NIMs, while private banks reported an 18 bps decline in Q1 FY26. Sluggish demand and bond market competition are key drivers.<\/p>\n<h2 data-start=\"1709\" data-end=\"1737\">Long-Term Strategy Shift?<\/h2>\n<p data-start=\"1739\" data-end=\"1913\">A DBS report notes that tariffs are part of a broader fiscal strategy, not just trade policy. Banks may need to adapt lending portfolios amid evolving global trade risks.<\/p>\n<p><i>Click here to explore: <a href=\"https:\/\/www.niftytrader.in\/sensex-today\">Sensex Today<\/a><br \/>\n<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian banks are likely to re-evaluate their corporate and SME lending plans after the US imposed 25% tariffs on Indian exports. The move creates uncertainty for export-linked borrowers, delaying recovery in credit demand. Credit Demand Already Weak Slowing Growth in FY26 Corporate and SME credit growth slowed to 6\u20139% YoY, down from 12\u201315% in late [&hellip;]<\/p>\n","protected":false},"author":10,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1386],"class_list":{"0":"post-13082","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1386,"user_id":10,"is_guest":0,"slug":"ruchikadave","display_name":"Ruchika Dave","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/07\/Ruchika-Dave.jpg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/07\/Ruchika-Dave.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/13082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=13082"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/13082\/revisions"}],"predecessor-version":[{"id":13106,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/13082\/revisions\/13106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/13083"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=13082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=13082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=13082"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=13082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}