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
- Nine reasons why India's WTO veto shocked the world
- India says WTO deal not dead, can sign in Sept if concerns addressed
- UPDATE 3-Ugandan court overturns anti-gay law that halted Western aid
- UPDATE 4-African leaders agree steps to fight runaway Ebola outbreak
- Gaza truce over, Israel soldier captured, 70 dead in Rafah shelling
Prime Minister Narendra Modi came to office with a reputation as a business-friendly leader ready to open up one of the world's biggest markets and sweep away the remnants of the country's socialist past. Full Article