Rating agencies are forecasting a fall in net interest margins (NIMs) for Indian banks of 10-20 basis points to 3.0-3.1% in the current fiscal year, due to rising deposit costs. However, the growth of non-performing loans could eventually increase profits the following year. Icra suggested that while this year's loan growth is likely to slow, adding higher interest rates may help to create the second-highest increase on record; in contrast, the banking system would see upward pressure on deposit costs, thereby putting pressure on NIMs.