IDFC First Bank targets 5.5% NIM in 5-6 years on higher yield on loans

The retail loan portfolio, including SME credit, was over Rs 36,000 crore at end of Dec

IDFC First Bank is targeting net interest margin (NIM) to 5.5 per cent in 5-6 years, from 3.27 per cent in the December 2018 quarter, on higher yield on loans and rising share of low-cost deposits. 

The bank said gross yield was expected to continuously increase as the share of retail assets moves towards 70 per cent of the total fund assets. 

The retail loan portfolio, including Small and Medium Enterprises (SME) credit, was over Rs 36,000 crore at end of December. The bank plans to grow the retail asset book to over Rs 1 trillion in six years. 

Capital First, a finance