Declining NIM, rising credit costs, and MTM provisions to hit banks hard in FY14
September 6, 2013
According to ICRA, a weak macro environment, large rupee depreciation, vulnerability of a large number of infrastructure projects and the rising yields will have significant bearing on the earnings and asset quality of banks in India in FY14
Moneylife Digital Team Ratings agency ICRA has said that declining net interest margins (NIMs) rising credit costs and mark-to-market (MTM) provisions would affect banks in India during FY2014. "A weak macro environment, large rupee depreciation, vulnerability of a large number of infrastructure projects and the rising yields will have significant bearing on the earnings and asset quality of the banks," ICRA said in a research report.