Mumbai, Oct. 17 -- ICICI Bank Ltd, India's second largest private-sector bank, expects its net interest margin (NIM) to dip marginally in the December quarter as the full cost of foreign currency non-resident bank (FCNR-B) deposits raised in the September quarter kicks in, before margins begin to recover.

"The full impact would largely get reflected in the third quarter, after which we expect the margins to start moving up, even based on the current level of policy rates," executive director Sandeep Batra said at a post-earnings press conference on Saturday.

The private lender's net interest margin (NIM)-the difference between a bank's earnings on loans and investments and its cost of deposits and borrowings-fell to 4.18% in the Septemb...