Mumbai, Oct. 24 -- Kotak Mahindra Bank expects its net interest margin (NIM) to remain around the second-quarter level in the coming quarters as the full impact of high-cost foreign currency non-resident bank or FCNR(B) deposits is offset by the repricing of repo-linked loans and the deployment of surplus funds into higher-yielding customer assets, outgoing managing director and chief executive office Ashok Vaswani said.

"We will see margins in the same region as Q2," Vaswani said while answering a question during the bank's September-quarter earnings call on Saturday. He said the impact of FCNR(B) deposits would continue into the third and fourth quarters of FY27.

For the quarter ended September, the bank's NIM fell to 4.31% from 4.53%...