Don't see any impact from Dubai situation: BoB

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In an interview with CNBC-TV18, MD Mallya, CMD of Bank of Baroda spoke about the ramifications of the Dubai crisis and its impact on his company.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Do you expect any disruption or any impact on your business at all from Dubai after the developments of yesterday?

A: As far as Bank of Baroda (BoB) is concerned, I don't see any major concerns because our exposures to the real estate segment in Dubai have not been very significant. I would say overall in our total loan book at Dubai - it is about 5-6% only. I would also like to mention that all these loan accounts have been serviced up-to-date with interest paid up to date. We have no over dues whatsoever.

Therefore if we look at a portfolio as of now of Bank of Baroda, we don't see any real concerns coming in despite the fact that real estate has not been doing too well in the recent past in Dubai.

Q: For most of these investors, it is mostly retail account that you are operating right now in Dubai?

A: It is not exactly only retail account. We are there in other manufacturing units also. Again, when we talk in terms of exposure to UAE - we have exposures not only in Dubai, we have exposures in Abu Dhabi, we have exposures in Ras-Al-Khaimah, we have exposures in Bahrain, in Oman etc. In all these places we have branches.

Therefore even though Dubai is a dominant place where we do business, our overall loan book is spread over all these places. Therefore by and large, it's an equitably distributed portfolio with reference to industrial segments or otherwise.