According to an industry estimate, of the 120 crore population, merely 2 crore are investing in mutual funds currently. The industry, comprising 40 fund houses, is looking to make it to 9 crore over 3-5 years.
Moreover, Amfi is likely to form a committee to decide how to utilise the fund and the issue may come up for discussions during the forthcoming monthly board meeting scheduled later this month.
According to Pawan Agrawal of CRISIL Ratings, the cumulative provisioning today stands at roughly Rs 1.5 lakh crore and as per their analysis, there is additional provisioning requirement of Rs 3.5-4.0 lakh crore which will have to be provided for over the next 3-4 years.
CVR Rajendran, CMD of Andhra Bank said the bank is mulling many options to deal with the exposure of Rs 1500 crore. If the company's CDR plans go through, the bank is willing to refinance the loan by extending the period of repayment.
Andhra Bank has registered a more than four-fold jump in its net profit at Rs 201.71 crore in the third quarter ended December 2014, on higher interest income. In an interview to CNBC-TV18, CMD CVR Rajendran discusses on the numbers and the road ahead.
CVR Rajendran is confident of maintaining the net interest margin at 3 percent in Q3 and gross NPAs and net NPAs at Q2 levels.
Discussing the company results, CVR Rajendran, CMD, Andhra Bank, said he expects asset quality to improve substantially in H2 and recovery from agri loan waiver in the next 2 quarters.
Commenting about the third quarter results for the period ending December 31, 2013, Rajendran said the net profit of the bank declined by 82.1 percent to Rs 46 crore due to higher provisioning on account of high NPAs.
Andhra bank‘s total exposure to Discoms is at Rs 10,000 crore. Bank‘s CMD CVR Rajendran sees power tariff increasing post 2014 elections.
CVR Rajendran, CMD, Andhra Bank, told CNBC-TV18 that the bank‘s earnings will improve by the second quarter next fiscal, during which time the bank may look to raise additional capital through a qualified institutional placement.
Bank of Maharashtra's CVR Rajendran spoke to CNBC-TV18 regarding government capital infusion of Rs 14,000 crore for the public sector banks and what are his expectations from the same.
Bank of Maharashtra may opt for QIP route or follow on public issue if it doesn‘t receive the entire amount from the government
More than 30 percent of Bank of Maharashtra's deposits are in interest-sensitive deposits, which come to more than Rs 1 crore, and unless the cost of deposits is increased, the bank may not be in a position to retain these deposits
Since their bank's base is small the credit growth in percentage terms appears to be large. So, the credit growth for the bank will remain above industry but will moderate to 16-18 percent in FY14, says CVR Rajendran, ED, Bank of Maharashtra.