Federal Bank reported a strong set of numbers for the September quarter. Speaking to CNBC-TV18, Shyam Srinivasan, MD & CEO of Federal Bank said that it is the best ever quarter for the bank.
The bank reported a 5-quarter high in net interest margins (NIM). Srinivasan said that NIMs would remain between 3.1 percent and 3.15 percent. “Our margins in the regular times were at about 3.1-3.15 percent. For 2-3 quarters it came down because for a large part of our book which was priced to our Treasury Bill (T-Bill), that had come down. As we see T-Bill rates stabilizing and repricing happening, it has come back to where its normal is and the business may sustain,” he said.
Srinivasan said that they have made provision of Rs 9 crore for interest-on-interest in Q2. He further added that slippages would have been Rs 237 crore if normal rules had been applicable.
“In the quarter there were no slippages, but what may have slipped if the moratorium or the Supreme Court order was not in place, we have made provisions for that,” he said.
Srinivasan is expecting a loan growth of 8-9 percent for FY21, and said the bank had no immediate plan to raise capital.