MUMBAI Federal Bank (FED.NS), a mid-sized private sector lender, is targeting a net interest margin of 3.25 percent in the fiscal year that began in April by focusing on growing its books, improving loan recovery and deposit portfolio, its chief executive officer said.
The bank's net interest margin improved to 3.42 percent in the January-March quarter from 3.31 percent a year earlier, Managing Director and CEO Shyam Srinvasan told Reuters after the release of its results on Friday.
Federal Bank's net profit rose sharply to 2.57 billion rupees ($39.98 million) in the March quarter from 102.6 million rupees in the same period a year earlier on the back of lower loan slippages and provisioning and strong net interest income. [nFWN1I00GX]
"Balance sheet has been consistently growing and slippages well contained, naturally profitability has increased," Srinivasan said.
The lender, which saw a 25 percent credit growth in the 2016/17 fiscal year ended March, aims to grow its books across segments including retail and corporate lending along with lower loan slippages in the current fiscal, he said.
($1 = 64.2800 Indian rupees)
(Reporting by Suvashree Dey Choudhury; Editing by Amrutha Gayathri)