IDBI chief says SHCIL merger soon; NIM at over 2% this fiscal
The bank is also hoping to close the merger of Stock Holding Corporation shortly as it is expecting the regulatory and government permissions soon.
“We hope to close the merger of Stock Holding Corporation with the bank very shortly. We have already appointed i-bankers for the deal also as we are awaiting regulatory nod,” IDBI Bank Chairman and Managing Director R M Malla said.
This will jack up the customer base of the bank by many lakhs, as the corporation has 7 lakh demat account holders, he said.
On the NIM, Malla said, “We hope to close the fiscal with a NIM of over 2 per cent, despite the 25 bps cut in base rate, as we have also reduced our deposit rates by a similar quantum.
“Also the 25 bps cut in the CRR will release Rs 500 crore of our dud funds, which will result into Rs 60 crore in interest income. Another positive is the overall improvement in the bad assets,” he said.
The city-headquartered lender has one of the lowest NIMs in the industry as its assets are project and corporate finances. This is despite the fact that it has the lowest cost per employee as well as cost-to-income ratios amongst the state-run lenders.
The bank registered a 41 bps improvement in the NIM in the
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