The state-owned bank's non performing assets (NPAs) rose to 2.9 percent in quarter ended june due to higher slippages. Slippages increased to Rs 2,800 crore in June quarter.
The company posted a marginal rise of 2.17 percent in its net profits for this quarter. Its gross NPAs rose to 2.91 percent against 1.98 percent during the same period last year. However, he is optimistic on better performance going forward as higher provisions will improve the lender's asset quality.
Also read: Canara Bank Q1 net nearly flat on higher provisions
Below is the edited transcript of his interview to CNBC-TV18.
Q: How was your asset quality this quarter in terms of fresh slippages and restructured loans?
A: Yes, there has been restructuring of assets and there has been more slippage than the upgradation. The recovery was a record one of Rs 888 crore and upgradation of more than Rs 1,000 crore. But the slippage has been more than Rs 2,800 crore because of which our non-performing asset (NPA) has gone to 2.9 percent.
Q: What were your fresh restructured loans this quarter?
A: The restructured amount this quarter is Rs 1,673 crore with 5 accounts in CDR and 11 accounts with non-CDR.
Q: What took place in terms of this quarter? What resulted in slippages rising to around Rs 2,800 crore? What is the trajectory expected going forward? Is there a lot of pain still left for Canara Bank?
A: There is some restructuring we expect to come in the coming three quarters. It may be around 15 accounts worth around Rs 4,000-5,000 crore. That may be coming in each quarter. Some may come in this quarter; some may come in December or March quarter. It may be one or two accounts less or more.
Q: In terms of the slippages this quarter, which sectors did you all turn into the slippages the most? What is the guidance on the same?
A: In this quarter, there was one account Winsome, which is a major account which slipped. Other than that there was not a very big account.
Q: How much is your exposure to Winsome?
A: Exposure to Winsome was Rs 650 crore.
Q: Anything from the power sector?
A: Another account was Allied Strips Delhi with Rs 280 crore and Pradip Overseas Rs 245 crore. These were the accounts above Rs 100 crore which slipped during this quarter. All three are likely to be admitted into corporate debt restructuring (CDR), if that exercise is completed within this quarter, they maybe upgraded also because they were referred when they were standard with us.
But other banks could not do the clearances, the process is going on. If the process is complete before September 30, these accounts can be upgraded also.
Anda sedang membaca artikel tentang
Canara Bank sees loan restructuring of Rs 5k crore in FY14
Dengan url
http://remajantigalau.blogspot.com/2013/08/canara-bank-sees-loan-restructuring-of.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Canara Bank sees loan restructuring of Rs 5k crore in FY14
namun jangan lupa untuk meletakkan link
Canara Bank sees loan restructuring of Rs 5k crore in FY14
sebagai sumbernya
0 komentar:
Posting Komentar