New Delhi: Indian private sector lender Karnataka Bank Ltd sees its net interest margin rising to over 3% by March 31, 2013, CNBC TV 18 reported Monday, citing managing director and chief executive officer P Jayarama Bhat.
"NIM increased from 1.93% to 2.45% (in fiscal first quarter of 2012-13 against same period last year). Going forward, we are directing towards over 3% by March 2013," he said.
The bank has set a loan growth target of 25% for the current fiscal, Bhat said, adding efforts are on to bring down gross non-performing assets to 2.5% or below that.
"Loan growth, we are setting a target of 25% this year. In Q1 itself, on quarterly basis, it has increased by 5% and 25% we are giving more thrust to retail book. Return on asset, we were somewhere around 0.73% in last March and it has increased to around 0.9% and we are directing towards 1.1% or1.2%. As far as NPA slippage is concerned, it is very much under control. We are expecting more recovery. We are trying to reduce gross NPA to around 2.5% or below."
To a question over talks of any merger or acquisition, he said: "Not at all, no suitors."
The bank's fiscal first quarter (Apr-Jun) net profit surged 67.59% to Rs 834.3 million from Rs 497.8 million in the same quarter a year ago, on account of higher income from interest.
Shares of Karnataka Bank Monday closed at Rs 101 on the Bombay Stock Exchange, down 1.27% from the previous close.