Aiming 3.25-3.3% net interest margins in FY16: Federal Bank

Federal Bank's net interest margin for FY15 was 3.27 percent, within the guidance range of 3.23-3.30. Shyam Srinivasan, Managing Director and CEO of Federal Bank, says the goal is to improve on this figure. However, with costs of deposits not falling much and some of the competitive rivals dropping borrowing rates, net interest margins are unlikely to improve meaningfully, he says.

“We believe that 3.25-3.3 would be a good outcome for FY16,” he says in an interview to CNBC-TV18.

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