Axis Bank expects NIMs to slip in FY14 - exec
MUMBAI (Reuters) - Indian private-sector lender Axis Bank (AXBK.NS) expects its net interest margins (NIM) to slip in the current financial year, from 3.86 percent in the June quarter, a senior executive told reporters on Thursday.
NIM, a key gauge of profitability for banks, is likely to remain in the 3.25-3.50 percent range in fiscal year 2014, Executive Director Somnath Sengupta said on a conference call.
The bank's asset quality is expected to be stable, he said.
Axis has significant exposure to troubled infrastructure projects as well as to mid-size companies facing cash-flow problems. Exposure to infrastructure and power sectors was about 13 percent of its total loan book at the end of March, according to its annual report.
Earlier, the bank beat market estimates to post a 22.5 percent increase in quarterly net profit in June quarter, and only a marginal increase in bad loans cheered investors. (Reporting by Swati Pandey; Editing by Sunil Nair)
- Tweet this
- Share this
- Digg this
- Google's Pichai to oversee major products and services
- Modi takes tea, but no questions, in first press event as PM
- UPDATE 2-Motor racing-Caterham and Marussia to miss next races - Ecclestone
- Two killed, four wounded in Washington state school shooting
- Finance Minister Arun Jaitley favours interest rate cut - paper
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Euro zone risks "relapse into recession" without structural reforms - Draghi. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article