There Are A Lot Of Expectations From The New Dispensation At The Centre

How do you see the scenario panning out for the banking sector in India?

Bankers are always positive in their approach. Now, with the installation of a stable government in the country, I expect an upward trend for the economy and also for the Indian banking sector. For a quite long time there has been policy -paralysis at the Centre, slowdown in world economy and poor fund flows into the core sectors. These factors have adversely affected the economy. There are lot of expectations from the new dispensation and we are hoping for the best in the days ahead.

There has been lot of talk about the rising NPA levels of banks. How would you like to address this issue?

 Yes, NPAs in the banking industry had risen to new levels. With the slowdown in industrial output as evident from negative IPP for a large part of the last couple of years, poor performance of the services sector, including IT sector, with not so encouraging scenario due to slump in IT spending by major economies, the economic activity of the country was adversely affected. This resulted in increase in NPAs. We find steady improvement in basics of major economies which should result in better days for the country as well. The Central government is looking for major overhaul in infrastructure and defence sectors and is acting as catalyst for boosting FDI, which may result in a turnaround in the NPA trend as well.

How will you rate your FY14 results? Did they meet your expectation?

As far as the industry trend is considered, our performance is in tune or even better. Having said that, as an entrepreneur there cannot be complacency. The business turnover has grown 12.5 per cent, with growth in deposits and advances at 12.55 per cent and 12.45 per cent, respectively. The operating profit increased by 8.14 per cent. We could register better profit in the last quarter of FY14. There has been slightly higher than expected delinquency in some assets. We are putting all efforts to reverse the trend.

What is your expectation for credit and deposit growth for FY15?

 The growth in deposits in the first quarter of the FY15 is very encouraging, but credit is yet to take off significantly. We are all looking for the budget with lot of expectations, which should give impetus to the economy and in turn to higher –disbursal of funds. With comfortable liquidity position, we will be able to scout for good, qualitative advances and look for encouraging results for the year. The bank has envisaged business of `83,000 crore by March 2015, comprising deposits of `48,000 crore and advances of `35,000 crore with CD ratio of 73 per cent.

Which sectors will propel credit growth in the next couple of quarters and what factors will aid it?

The auto sector has already shown positive trend. With increased spending by the government and improved economic trend world over, other sectors like textile, engineering, etc. are expected to show better results. However, with monsoon playing truant, all are worried about the agriculture sector.

What are your domestic and overseas expansion plans?

We are having presence in 21 states and 2 Union territories. The bank intends to increase the outlets to 1,675 from the existing 1,300, with 675 branches and 1,000 ATMs. We have already opened nine branches and 18 ATMs in this fiscal. The bank is not having any overseas presence.

What are the CSR activities that you are currently focusing?

Already the bank is involved in several socio-cultural activities under CSR. We are in the process of institutionalizing corporate social responsibility in tune with the provisions of the Companies Act.