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
The after-glow of Narendra Modi's election victory nearly four months ago is expected to have helped India's lumbering economy register its fastest growth in more than two years for the quarter ending in June. Full Article
In race for bigger margins, drug makers willing to lose the India "advantage". Full Article
Adani buys Australia coal mine royalty rights from Linc for $145 million Full Article