Axis Bank expects NIMs to slip in FY14 - exec

MUMBAI Thu Jul 18, 2013 7:52pm IST

An employee speaks on his mobile phone as he walks inside Axis Bank's corporate headquarters in Mumbai July 17, 2012. REUTERS/Vivek Prakash

An employee speaks on his mobile phone as he walks inside Axis Bank's corporate headquarters in Mumbai July 17, 2012.

Credit: Reuters/Vivek Prakash

Related Topics

Stocks

   

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)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Indian in Iraq

Indian in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage