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Banks take trading hits in Q4 as treasury income slips and Iran risks curb lending appetite
Economy
Published on 28 April 2026
Forex and rates shocks squeezed banks’ profits—now lending slows
In Q4 2025-26, Indian banks saw trading losses surge as rising interest rates and forex market corrections weighed on profitability. With Iran-related uncertainty clouding the outlook, lenders are turning cautious, prioritizing portfolio protection over expansion. Credit growth is expected to slow further as treasury income remains under pressure and risk appetite tightens.
- Trading losses rose amid higher interest rates and forex corrections
- Lower treasury income further pressured bank profitability
- Iran war uncertainty is making lenders more risk cautious
- Credit growth is expected to decelerate
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times