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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

GROUP OF 20

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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