Merchants State Bank has recorded the following financial data for the past three years (Rs in millions):

	Current Year	Previous Year	Two Years Ago
Interest revenues	Rs. 57	$56	Rs. 55
Interest expenses	49	42	34
Loans (Excluding nonperforming loan)	411	408	406
Investments securities and interest-bearing
Deposits in other banks	239	197	174
Total deposits	487	472	467
Money market borrowings	143	118	96

Answer briefly

Calculate NIM for the 3 periods. What has been happening to the banks net interest margin?

What do you thing caused the changes you have observed?

Do you have any recommendation for Merchants management team