The fall in yield on assets will not be completely off set by the fall in cost of deposits, which will lead to a contraction in the bank's NIM, Systematix Institutional Equities said.
"Expect loan growth of 4-5% QoQ and 15% YoY. Margins could decline by 5 bps, led by lower yields on EBLR-linked loans, partly offset by benefits from the lifting of supervisory restrictions and SA rate-cut. Build in credit costs of 75 bps as MFI delinquencies remain elevated, with RoA at 2.15%," Dolat Capital Market Research said.
"The sequential growth in employee expenses is expected to be higher than the advances growth, driven by annual increments. Other opex growth is expected to be in line with the advance’s growth," Systematix said.
