City Union Bank plans to raise up to Rs 400 crore: CFO

Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.

Q: By when will you start raising Rs 350 crore via QIP?

A: Currently, we are on the path of raising up to Rs 400 crore via right issue. Once the right issue is completed by September, then we will look at QIP.

Q: What will be your capital adequacy after right issue?

A: Around 16%.

Q: Will you use QIP permission in FY13 or later?

A: Depending upon growth perspective we will raise the funds.

Q: You book has 13% exposure to agriculture, with subdued monsoon, are you planning to restructure you book if monsoon falters?

A: We do not have any major restructuring in our books.

Q: How would you expect growth at this juncture and will you be able to repeat this advances growth of 31%?

A: As per the trend we expect to achieve same growth as witnessed in past quarters.

Q: How are net interest margins panning out?

A: Last year net interest margin was close to 3.40%. There is not much pressure on net interest margin right now during this year. It is maintained at same level.

Q: Considering the downturn in the economy will you have to post a little more than that 1% gross NPLs that you posted in the last available P&L?

A: Our gross NPA now stands at 1.02%. From our books we see it not industry specific, but unit specific. Even if 1% goes up substantially we will not be under pressure. There might be marginal addition.