ING Vysya dips 4% on fall in net interest margins q-o-q
NIM is the difference between interest earned and interest expended
ING Vysya Bank has dipped 4% to Rs 358 after reporting fall in net interest margins (NIM) at 3.29% in March 2012 quarter, compared to 3.49% in previous quarter, due to higher cost of funds. NIM of the private sector lender stood at 3.30% in the previous year quarter.
NIM is the difference between interest earned and interest expended and a key matrix in a bank’s profitability.
Meanwhile, on back of demand for loans from both large and small companies and mortgages from individuals the bank has reported a healthy 40% year-on-year (y-o-y) growth in net profit at Rs 127 crore in the January-March quarter. The bank made higher provisioning this quarter at Rs 56.6 crore to take its provision-coverage ratio to 90.7%.
A combined 196,923 shares have changed hands on the counter so far on both the exchanges.