Calcutta, July 25: The United Bank of India (UBI) is likely to report a higher net interest margin (NIM) and healthy growth in both credit and deposits for the quarter ended June 30, the bank’s chairman and managing director Bhaskar Sen said today.
Net interest margin of a bank is the difference between the returns from funds deployed by the bank for lending and investments and the cost incurred on deposits and borrowings.
A higher net interest margin indicates higher profitability.
“We have set a target of 20 per cent credit growth and the growth in deposits is also healthy. NIM is likely to be above the 3-per-cent mark,” Sen said on the sidelines of a seminar on banking organised by Ficci.
The bank had reported a 2.98 per cent NIM in the corresponding quarter of the previous year.
Earlier, city-based Allahabad Bank had reported an improved NIM (3.4 per cent) compared with the same period a year ago.
The chairman of the State Bank of India had said the NIM of the country’s largest lender would be 3.6 per cent compared with 3.15 per cent a year ago.
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