Expect NIM at 4% for FY11: Gruh Finance

In an exclusive interview with CNBC-TV18's Ekta Batra and Reema Tendulkar, Sudhin Choksey, Managing Director of GRUH Finance sees the Net Interest Margin for FY11 at around 4%.

He also says that there has been 28% growth in oan assets and the disbursements have been to the tune of almost 71%. "If the property buying continues in the next quarter, we should be able to do around Rs 1,100 crore disbursements by the end of the year," he adds. Below is a verbatim transcript of the interview. Also watch accompanying video. Q: Could you tell us what the net interest margins of the company were for the quarter? What you are hoping to hear in terms of the Net Interest Margins (NIMs) for the entire year? A: NIMs for the end of Q3 has been to the tune of around 4.89%. They have been coming under pressure because the interest rates have been rising and the corresponding home loan prices have not been increased. The loan prices should have been increased for the interest rates on home loan to go up. Until the loan prices go up, the spreads will come under pressure. Therefore, by the end of the year, probably we should have NIM to the tune of around 4%. Q: Can you talk about your loan disbursements? What you are expecting for the full year FY11 considering, you have done around 28% for the nine months? A: 28% has been a growth in loan assets and the disbursements have been to the tune of almost 71%. We have disbursed around Rs 840 crore in nine months. If the property buying continues in the next quarter, we should be able to do around Rs 1,100 crore disbursements by the end of the year.