Banks’ net interest margin (NIM), a key profitability gauge, grew 46 basis points to 3.3% in the January-March quarter, driven by slower deposit rate resetting, according to an analysis by Care Ratings. This growth in NIM led to a 29.5% increase in net interest income for banks during the period. The better NIM was driven by slower deposit rate resetting, and the anticipated rise in deposit rates due to the withdrawal of Rs 2,000 banknotes in May was expected to be counterbalanced.