Moneycontrol
you are here: HomeNewsBusiness
Last Updated : Oct 26, 2018 01:49 PM IST | Source: CNBC-TV18

Loan growth for FY19 will be between 30-40%: Yes Bank's Rajat Monga

Monga added that the CEO search committee is also looking at internal candidates.

Moneycontrol News @moneycontrolcom

Moneycontrol News 

Loan growth for FY19 will be between 30 and 40 percent, Rajat Monga, Senior Group President-Financial Markets at Yes Bank told CNBC-TV18.

Monga added that the lender has not made loans to IL&FS holding companies, clarifying that all exposure is to downstream companies.

Yes Bank posted net profit of Rs 964.7 for the September quarter, down 3.2 percent from the same period last year.

Also read: Top 10 takeaways from Yes Bank Q2 results

Sharing his outlook, Monga said, “IL&FS continues to be our standard account and we don’t have loan to the holding company. So the loans that we have in the group is all into their downstream including their SPVs. So the assessment of asset quality has to be done on the basis of the performance of debt servicing and also on the collateral values that exist in the loan. So IL&FS anyway is going through its own process of resolution. So it is a good idea to watch for what the new board is going to do in terms of taking next steps."

“The exposures are all to specific projects ... they are to the underlying assets which have land and we give construction financing to those projects. There would be one and a half to two and a half times cover depending upon project to project. These are ring-fenced exposures which means that if the project is being completed, our loan will be repaid as the project gets sold. So if you look at our exposure about real estate, about 80 percent is to residential and 20 percent is to commercial,” he added.

Monga added that the chief executive officer (CEO) search committee is also looking at internal candidates.

Yes Bank's Managing Director and CEO Rana Kapoor's term ends on January 31, 2019. The Reserve Bank of India (RBI) refused to give the green signal to extend his appointment.

Speaking about his appointment as executive director, Monga said that he is awaiting approval from the central bank.

Source: CNBC-TV18
First Published on Oct 26, 2018 11:44 am
Loading...
Sections
Follow us on
Available On