NIFTY 50

Rs 1700 crore of loans under moratorium will become NPA: South Indian Bank

Updated : October 16, 2020 09:39 AM IST

Lower cost of funds aided strong net interest income (NII) growth for South Indian Bank during the September quarter, Murali Ramakrishnan, MD & CEO, told CNBC-TV18.

However, elevated provisions continue to impact earnings, he said.

“We expect about Rs 1,700 crore of book from moratorium loans will become NPA over next few quarters and we also expect about Rs 1,200 crore to be restructured in the immediate period,” he added.

The bank expects net interest margin (NIM) for FY21 to be at 3 percent.

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