NIMs to stay robust in second half of FY18: Federal Bank's Shyam Srinivasan

He has also seen a rise in use of working capital limits in some pockets, like textiles and he believes that the full effect of GST will be seen in Q3

Kochi-based Federal Bank posted a 25 per cent growth in credit in Q2, bucking a slowdown trend being seen across the banking industry. SHYAM SRINIVASAN, its managing director and chief executive, tells Abhijit Lele the growth trajectory would remain. Edited excerpts: 

Your net interest income (NII) grew 23.8 per cent in the quarter. What contributed to this growth?

There has been all-round growth. Consistency in credit growth, better credit-to-deposit ratio and lower interest rate reversal (for bad loans) contributed to better NII. 

Net interest margin improved in the quarter? Will the bank post better NIMs in the second half of the year?

NIMs in