RBL Bank, which reported a sharp spike in provisions and deterioration in the asset quality in the July-September quarter, is focusing on normalising its business by the fourth quarter, said Vishwavir Ahuja, Managing Director and CEO of the company.
The stock slipped 18 percent intraday on October 23 to hit its 52-week low of Rs 235.85 on the NSE.
"We have taken Rs 800 crore of specific non-performing assets (NPAs) this quarter," said Ahuja in an interview with CNBC-TV18.
“I do not believe that the entire Rs 1,800 crore number is going to convert into NPA or any of that nature; some of that will be resolved, some of that will be recovered. Having said that, whatever is that number that has to be converted, we will take the bulk of that in the next quarter so that Q4 can be normal.
"The whole idea is to be conservative in terms of intent, absorb it in this and next quarter, so that by Q4 we are back to normalcy and also in terms of the world at large, be able to provide greater clarity and certainty in terms of our future growth journey," Ahuja said.
About the festive season, he said: "Festive season is important but at the same time this is a time to be careful. In retail businesses, the growth will remain elevated. It will be the same level of growth that we are experiencing presently and that growth trajectory is intact and will continue to happen. I don't think we are seeing an environment where we will see significant growth on the corporate side," added Ahuja.
Source: CNBC-TV18
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