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finance | IST

Indian Bank expects overall loan growth of 15% led by corporate loans

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Talking about NIM, Indian Bank's Padmaja Chunduru said, “In the current quarter (Q2), the net interest margin is at 2.85 percent and we expect it to be going up to 3 percent in time to come.”

Indian Bank reported a mixed set of numbers for the June 2019 quarter with muted net interest income (NII) growth and elevated slippages impacting Q1 earnings. The bank made lower provisions in comparison to slippages and other income aided earnings. Padmaja Chunduru, MD and CEO, said slippages have declined year-on-year (YoY) to Rs 1,000 crore in Q1FY20 versus Rs 1,391 crore a year ago. Corporate slippages were of Rs 430 crore of one account in Q1, she added.
Talking about NIM, she said, “In the current quarter (Q2), the net interest margin is at 2.85 percent and we expect it to be going up to 3 percent in time to come.”
Speaking about loan growth, Chunduru said, “Usually Q1 is not a quarter for loan growth because a lot of things settle down in Q1.
“We see a growth of at least 15 percent to overall in this year and corporate would grow around 12 percent,” she added.
On NCLT front, the CEO said that the bank has exposure of Rs 2,800 crore in the NCLT. According to Chunduru, part of exposure to ADAG is a non-performing asset (NPA) while Rs 200 crore of exposure remains standard.