NPAs pull ING Vysya's NIMs down, but it isn't a worry

ING Vysya Bank has reported a profit after tax (PAT) growth of 36% for the first quarter of FY12. Net profit was recorded at Rs 94 crore in Q1 against Rs 69.1 crore, a year ago.

Announcing the results, Shailendra Bhandari, managing director and chief executive offier of the bank said, "Our advances grew 26% while deposits recorded a 29% growth. Net interest income came in at Rs 262 crore this quarter against Rs 237.7 crore in same quarter, previous year." Current-account-savings-account (CASA) ratio was recorded at 33.8% in Q1 FY12. Also read: ING Vysya Bank Q1 net profit up 36% at Rs 94 cr Provisional coverage for non-performing assets stood at 84%, which added further pressure to the net interest margin (NIM) of the bank. "While NIMs in Q1 have been impacted, we do not see further pressure on it," the MD told the media. The management of ING Vysys expects NIMs to improve, going forward. Watch accompanying video to know what more Bhandari had to say.