Consider the following statements about the impact of re-pricing of bank term deposits on banks' profitability:
1. The cost of funds for banks is expected to rise by 25-30 basis points (bps) in FY25.
2. Net interest margins (NIMs) of banks are expected to decline by 10-20 bps to 3.0-3.1 percent in FY25.
3. The return on assets (ROA) is expected to moderate to 5.1-5.2 percent in FY25 from about 1.3 percent in FY24.
Which of the above statements is/are correct?
1
1 only
2
2 only
3
1 and 2 only
4
3 only
5
1, 2, and 3