"The earlier estimate for NIM on the domestic side was at 3 per cent, but the turnaround which we thought, has not really happened. So, we are compelled to revise that to 2.90 per cent," bank's Chairperson and Managing Director Vijayalaxmi Iyer told reporters here.
However, the bank expects net interest margins on the international side improving to 1.20 per cent by March-end, while the combined NIM is likely to at 2.72 per cent.
The state-run bank is also examining to sell around Rs. 900 crore worth of non-performing assets (NPAs) to asset reconstruction companies in the current quarter.
"We have been doing it (sale of NPAs) in last two quarters, and we are examining at it even in this quarter
also. We have to crystallise on the amount...it may be Rs. 800-900 crore in Q4," Iyer said.
She said the bank had auctioned Rs. 2,000 crore of NPAs in Q2 and Q3, but only about Rs. 627 crore was taken off from the gross NPA level.
Iyer added the bank was not likely to take any hit by selling the NPAs to ARCs.
"In the first two quarters when we have sold NPAs, we have sold them above the net book value and have not taken any haircut. We have got the excess provisioning which has been put aside and we can use it if are compel to sell them less than the book value in this quarter," Iyer said.