Aim to achieve 17% growth in loans for FY13: Vijaya Bank

Below is an edited transcript of the interview on CNBC-TV18. 

Q: What are your net interest margins (NIMs) for this quarter?

A: The NIM reported for Q1 of FY12-13 is 2.15%

Q: And as compared to 2.8% on a quarter-on quarter (QoQ) basis?

A: In March 2012, the NIM was 2.47% and during the current financial year of 2012-13, we hope to maintain the NIM at the same level.

Q: What about asset quality? What kind of improvement do you hope to see in the quarters to come because this time you have reported 2.85%?

A: The asset quality looks like this- our gross NPA as of June 30, 2012 has come down to Rs 1,693 crore from a level of Rs 1,718 crore as of March 2012. In percentage terms, it has come down from 2.93% to 2.85%. Similarly, the net NPA has also come down from Rs 998 crore to Rs 978 crore. In percentage terms, it has come down from 1.72% to 1.67%.

Going forward, we are hopeful that we will be in a position to contain the level of the non-performing assets within last year’s limit. There may not be any substantial growth, but I do acknowledge that there would be cases of restructuring under CDR as well as outside CDR, including the discom (electricity distribution companies) accounts.

Q: What is the fresh restructuring conducted in this quarter and where has the pressure come in from, with respect to individual sectors?

A: During the current quarter, the total restructuring that the bank has is of the order of Rs 827 crore and this includes among others, the accounts of discoms and the infrastructure sector.