Welcoming the Q2 earnings, Deepak Narang, executive director, United Bank Of India says the bank has recovered more assets than the slippages it has seen this quarter.
The bank reported a profit of Rs 43.8 crore profit in Q2 as against Rs 489.47 crore loss in the same period last year.
Below is the verbatim transcript of Deepak Narang’s interview with Ekta Batra on CNBC-TV18.
Q: Could you just take us through your asset quality details, what were fresh slippages, what were fresh restructuring and upgrades recoveries this quarter in particular?
A: Our non-performing assets (NPAs) in absolute amount have come down by about Rs 22 crore. Slippages have happened but recovery is more than the slippages. Quarter-on-quarter (QoQ) we have been reducing our NPAs which is very good for us. We have tried to hold on to our asset quality. We don’t see any concern; we have to look upwards and go forward that is what I would say.
Q: If you can give us specific numbers on slippages, restructuring as well as recoveries this quarter because last quarter you said that you are going to continue focusing on that. Give us specific numbers on all three parameters.
A: Recoveries and upgradation has been about Rs 800 crore, in fact less than that Rs 780 crore is my slippages. Rs 800 crore has been my upgradation roughly. Cash recovery Rs 340 crore or something and Rs 235 crore is the cash recovery; rest is upgradation.
Q: What is your sense in terms of the asset quality trajectory; the last time you spoke to us you were aiming for 9-9.5 percent on gross NPAs by March 2015. Is that still achievable and what were your net interest margins (NIM) this quarter as well?
A: We expect to still keep our focus on recovery and whatever I said earlier we will try to achieve that. Slippages and restructuring is a part of the banking business. Restructuring may happen in some accounts in the next quarter but we are sure that we will upgrade also equal number of accounts. So, again NPA is going to be less than what it is in September.
Q: Net interest margins for the quarter gone by?
A: We had a NIM of about 2.2 this time.
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