In an interview to CNBC-TV18, sharing his outlook for 2012, JP Dua, Chairman of Allahabad Bank said the bank is hopeful to maintain NIMs at above 3%.
In an interview to CNBC-TV18, sharing his outlook for 2012, JP Dua, Chairman of Allahabad Bank said the bank is hopeful to maintain net interest margins (NIMs) at above 3%. The bank has recovered Rs 700 crore so far, although Dua said the aim is to cross Rs 1,000 crorce by way of recoveries in FY12. Further, he said, "The expected credit growth is around 18-19%."
Meanwhile, taking about sectors, Dua also said, "I don't expect much exposure in agricultural sector." And, also expressed concerns over the SME sector delinquencies.
Below is an edited transcript of JP Dua's interview to CNBC-TV18. Also watch the accompanying video.
Q: What is the outlook for 2012 in terms of credit growth for the industry? Do you think the banking industry can see 14-15% credit growth after the tough year we have seen in 2011?
A: Credit growth in the first nine months has been around 15-16% and I am hopeful that since the busy season has started already; we will be able to clock around 18% to 19% of credit growth.
Q: What is your sense on non-performing assets? The kind restructured loans you have already seen and the progress going forward, do you expect to remain at current levels or could there be deterioration as many accounts to give up because of high interest rates at the moment?
A: The four major sectors of the economy are affected