Moneycontrol
Aug 16, 2016 08:00 PM IST | Source: CNBC-TV18

Expect no additions to watch-list going forward: Axis Bank ED

In an interview with CNBC-TV18, V Srinivasan, ED of Axis Bank, talked about the bank's asset quality picture and the outlook going forward.

In an interview with CNBC-TV18, V Srinivasan, ED of Axis Bank, talked about the bank's asset quality picture and the outlook going forward.

Below is the verbatim transcript of V Srinivasan's interview to Ritu Singh on CNBC-TV18.

Q: Axis Bank is one of the larger banks and has an exposure to infrastructure. We are talking about stress in the system post the asset quality review (AQR) exercise now the banks are paying, things are looking a better, is that the sense that you are getting as well on the ground from the client. Is credit demand also picking up?

A: I think things are broadly stable, I think one feels that we have hit the bottom and start bouncing off, but we need to just watch out for next few quarters. As far as Axis itself is concerned, I think we have really come out with our version of what we believe the problem areas could be and the size of the problem and it is playing according to that script.

Q: You have not added any account per se net-net to your watch list. Going forward you have added some, but I think it is balanced off in the number in the accounts that have slips, so net-net you shall maintain your watch list at about Rs 35,000 crore at the end of this quarter?

A: I don’t think so I think we were very clear that we do not add anything to the watch list and the watch list is static or getting upgraded. We have no more addition to the watch list and therefore after the first quarter the amount as far as the watch list is concerned is lower than what it used to be, considering the slippages which happened in Q1.

Q: You said that bulk of the pain will come in the first two quarters of this fiscal, what we seen in the first quarter could we see a similar repetition in terms of the high bad loans in the second quarter as well?

A: I can just repeat what we said, let’s wait for Q2 to happen.

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