Banking return on assets to dip 10-20 bps: Crisil

Return on assets (RoA) of banks, after hitting a 20-year high in the previous year, is forecasted to ease to 1.1-1.2% in the current fiscal year, according to Crisil Ratings. The moderation is attributed to higher deposit costs impacting net interest margins. Credit costs are expected to stabilize, supporting overall profitability as non-performing assets decrease.