Padmaja Chunduru, MD & CEO of Indian Bank, on Tuesday, said the micro, small and medium enterprises (MSMEs) and the retail book will see a rise in restructuring in FY22. She was talking to CNBC-TV18 about the bank’s earnings for the March-ended quarter.
Indian Bank on Friday, May 28, reported a net profit of Rs 1,708.85 crore in the March-ended quarter. The lender had posted a net loss of Rs 217.74 crore in the same quarter of the preceding financial year 2019-20.
“MSME is going to be the area where the maximum vulnerability is there followed by retail. Corporate is more or less controlled; there are no big fresh advances which we expected to slip. So it would be mainly MSME and retail,” said Chunduru.
“Given the restructuring guidelines as well as initiatives given by both the government and Reserve Bank of India (RBI), the bank has rolled out those products and schemes. Therefore, we expect a fair bit of restructuring will happen both in MSME and retail this year,” she said.
On CASA, Chunduru said, “The improvement in a current account savings account, is one synergetic effect of amalgamation (Allahabad Bank merged with Indian Bank), has been very good. The CASA has improved to 42 percent, its 150 bps improvement year on year (YoY).”
For the entire management interview, watch the video