The South Indian Bank is striving at improving its fundamentals, said Murali Ramakrishnan, MD & CEO of the bank in an interview to CNBC-TV18.
The bank has approval to raise Rs 750 crore and Ramakrishnan says the bank will look to raise money at the right price.
On the net interest margin (NIM), he said that the NIM will be close to 2.6-2.7 percent in FY21.
On the overall asset quality of the bank, Ramakrishnan said, “Our moratorium book at the end of August it was about Rs 17,000 crore. 10 percent of that is likely to slip into NPA which is about Rs 1,700 crore. Of that Rs 1,400 crore is likely to become NPA in Q3 and Q4. Apart from that, we are looking at Rs 1,200 crore of restructuring.”
Ramakrishnan said that the retail book currently stands at about Rs 15,000 crore and housing and mortgage constitutes about Rs 10,000 crore. Recovery in housing and mortgage is in excess of 90 percent, he said.
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(Edited by : Abhishek Jha)