Demonetisation: Recovery of NPAs slow, impact on NIMs likely, says City Union Bk

N Kamakodi, MD & CEO, City Union Bank giving an outlook on the loan book and NPA recovery for the quarters going forward post demonetisation told CNBC-TV18 that year on year December quarter growth would be around 10-12 percent compared to the 17 percent posted in September quarter.

Recoveries of non-performing assets (NPAs) have not been as fast as in October, post demonetisation, said Kamakodi.  Net interest margins also could be impacted, he said.

He said the bank’s exposure to agriculture is around 18 percent of the loan book but bulk of that book is from gold loans. Therefore they are not overly worried about any agri loan waiver, if it is announced in the government.

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