'NIM will rise by 10-15 bps by Q4'

WITH GREEN SHOOTS in private capex and margin recovery after the rate cycle bottoming out, Ashok Chandra, MD & CEO, Punjab National Bank, tells Mahesh Nayak that he anticipates a 10-15 bps net interest margin (NIM) improvement by the fourth quarter. He sees GST cuts driving retail and MSME lending and expects a minimal impact from the expected credit loss (ECL) norms. Excerpts:

- ASHOK CHANDRA, MANAGING DIRECTOR & CEO, PUNJAB NATIONAL BANK

What is your view of the rising foreign acquisition in the banking sector? The increasing foreign investment and consolidation like RBL Bank & YES Bank in the banking sector signify the resilience and robustness of the Indian economy and financial system. With the government allowing up to 74% FDI, the bank expects more foreign investors to show interest in the Indian market. Regarding the consolidation of PSU banks, so far there is nothing on cards and we haven't had any dialogue from the government.