Lower interest rates will percolate into system
Results for the third quarter have been off the mark, according to some analysts.
I am surprised that people are saying results are off the mark. The third quarter profit came at around R1,140 crore and second quarter profit was at R1,151 crore, which is a fall of about R11 crore quarter-on-quarter. We need to remember that in the second quarter we had some dividend income of R194 crore and in the third quarter this income was at R45 crore. The dividend can’t come in every quarter, but that has got nothing to do with growth. For the decline of about R150 crore worth of dividend, R139 crore was made up through higher net interest income (NII) at R1,624.25 crore during the quarter, up 19% from a year ago.
What is your outlook for the net interest margin (NIM)? It has contracted on a sequential basis.
There must be some marginal change on a quarter-on-quarter basis. It should remain in this broad range of 4%-4.2%.
Which segment is the growth coming from?
In the last quarter, growth was largely on account of individual loans. If we add back the loans that we sold in the last 12 months, the individual loan book went up by as
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