In an interview to CNBC-TV18, Shyam Srinivasan, managing director and chief executive officer of Federal Bank says, FY12 margins of the bank is likely to be at 3.75%.
FY13, he says, may see some fall in margins. His target for net interest margins (NIMs) is at 3.5% to 3.6% for the next financial year. He further says, the bank is not looking at capital raising in FY12 and FY13. Below is the edited transcript of his interview with CNBC-TV18's Latha Venkatesh and Ekta Batra. Also watch the accompanying video. Q: A bit of concern with respect to several private, what you now called old private sector banks, after the happening in Dhanlaxmi Bank. We are given to understand that the Reserve Bank is little more concerned about the entire old private sector banks. Did you get any further enquiries, little more by way of inspection? A: I think that is a very generic statement. It could be a bank specific. We confidently say that our bank is well placed. The Reserve Bank looks at us positively and favourably. I cannot speak at a generic level. We are in good shape. Q: You have cut your base rate by 10 bps effective today. How the dynamics are playing out? On the one hand, we have a fairly tight short-term money markets situation one day and one month money looks expensive, but not many takers for longer-term money. A: The rate cut is reflective of what we think the coming months will play out. So, we are just being ahead of the pack on that and being more comparatively priced. In the near-term, with the election fever almost beginning to play out, some of the money thatDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
