City Union Bank plans to raise up to Rs 400 crore: CFO

S Sundar, CFO, City Union Bank, says that the bank is currently planning to raise Rs 400 crore via right issue and the bank may go in for QIP route once the right issue is completed in September. He also says that NIM currently stands at the same level as it was in last year.

Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video. Q: By when will you start raising Rs 350 crore via QIP? A: Currently, we are on the path of raising up to Rs 400 crore via right issue. Once the right issue is completed by September, then we will look at QIP. Q: What will be your capital adequacy after right issue? A: Around 16%. Q: Will you use QIP permission in FY13 or later? A: Depending upon growth perspective we will raise the funds. Q: You book has 13% exposure to agriculture, with subdued monsoon, are you planning to restructure you book if monsoon falters? A: We do not have any major restructuring in our books. Q: How would you expect growth at this juncture and will you be able to repeat this advances growth of 31%? A: As per the trend we expect to achieve same growth as witnessed in past quarters. Q: How are net interest margins panning out? A: Last year net interest margin was close to 3.40%. There is not much pressure on net interest margin right now during this year. It is maintained at same level. Q: Considering the downturn in the economy will you have to post a little more than that 1% gross NPLs that you posted in the last available P&L? A: Our gross NPA now stands at 1.02%. From our books we see it not industry specific, but unit specific. Even if 1% goes up substantially we will not be under pressure. There might be marginal addition.