Growth in NIM has slowed down for 9 month period in Financial Year 2012-13.
Growth in Net Interest Margin (NIM) has slowed down for the 9 month period in Financial Year 2012-13 due to a combination of low business growth and changing interest rate scenario. The major problem confronting banks remains to be Non-Performing Assets (NPAs) which have grown by 43.1% on top a similar growth last year. In absolute terms growth has been from Rs 1.25 lakh crore to Rs 1.79 lakh crore during this period. This has been an outcome of the low industrial performance in both the years with FY13 being less satisfactory.