Bank of Baroda posted a good set of earnings as far as asset quality was concerned. PS Jayakumar, MD & CEO of the bank, spoke about the earnings.
“The slippages, when we look at it as a percentage to the receivables, this quarter it has been fairly consistent with what we have seen in the earlier three or four quarters,” Jayakumar told CNBC-TV18 on Friday.
On the slippages, he said, “Our total watch list asset is around Rs 16,500 crore of which Rs 10,000 comes from the earlier Bank of Baroda portfolio and the balance comes between Dena Bank and Vijaya Bank portfolio.”
“The plan we therefore have is that there is going to be slippage and there is going to be a recovery and there are some provisions, the net effect of it should result in the net NPA number coming down as we go through the quarters,” he added.
On the stressed assets front, Jayakumar said, "Our watch list includes ADAG and DHFL exposure."
“With respect to the non-bank finance exposure and the others, it’s not a zero-one game, in fact, the recovery levels are likely to be much higher than what we normally see because these are financial assets over which banks can take control,” he said.
“There aren’t any real large accounts at this point of time visible in our portfolio that could cause a further increase. So the real issue for us is to focus on recovery, make that equal to the amount that is slipping and then keep the net slippages close to zero and it is also going to be dependent upon the new regulations that have been on the NCLAT, its effect and the ability to see some good results with respect to the matters that are pending in the NCLAT because about 2/3rd of our portfolio is all matters that are lying in the NCLAT for resolution,” added Jayakumar.