The banks plan to maintain their margins as they may be able to squeeze in benefits of transmission of policy rates to lending rates, in addition to surplus liquidity at their disposal.
Banks have seen their NIM expanding so far in the current financial year, with State Bank of India SBI) leading the pack at 3.69% in Q3FY23,higher by 14 bps sequentially. The margin for the bank will be more or less stable going ahead, chairman Dinesh Khara said in an analyst call.
The bank is increasing interest rates to attract retail deposits to plug the gap between growth rates of credit and deposits. However, the bankwill calibrate its marginal cost of funds-based lending rates MCLR), giving it the elbow room to ensure that the margin is not affected, Khara said.
The bank has an MCLR book of around 40% of its advances. Additionally, the bank has excess liquidity to the tune of 3.2 trillion, which will enable it to support the credit growth.
Denne historien er fra February 08, 2023-utgaven av Financial Express Mumbai.
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Denne historien er fra February 08, 2023-utgaven av Financial Express Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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