In an interview to CNBC-TV18, Mahabaleshwara MS, MD & CEO of Karnataka Bank spoke about the latest happenings in the bank and what's in store for the banking sector in 2018.
Karnataka Bank is in focus after the bank called for a board meeting to appoint consultants to explore transformational opportunities. In an interview to CNBC-TV18, Mahabaleshwara MS, MD & CEO of Karnataka Bank spoke at length about the same and his outlook going ahead.
In an interview to CNBC-TV18, Mahabaleshwara MS, MD & CEO of Karnataka Bank spoke about the latest happenings in the bank and his outlook for the rest of FY18.
Karnataka becomes the fourth state to waive off farm loans. Waiver of loans disbursed by cooperatives to cost the state over Rs 8,000 crore. Karnataka Chief Minister (CM) urges the centre to forego loans by nationalised bank as well. “As far as this is not going to affect the repayment culture, we are not that much concerned,” Mahabaleshwara MS, MD & CEO, Karnataka Bank told CNBC-TV18.
HDFC Bank's Sukhthankar says the cyclical factors for creation of non-performing loans may have played out, but some borrower-specific issues still remain. On the entry of small banks and payment banks, Sukhthankar says the market is large enough to accomodate additional players.
Reserve Bank governor Raghuram Rajan has said there is going to be a bigger opening because they could contemplate new rules for the entry of foreign banks. It may even allow them to take over Indian banks.
While every macro economic parameter is looking difficult, perhaps the most important one will be growth. CNBC-TV18 catches up with the chairman of the country's biggest bank, Pratip Chaudhury of SBI to get a sense of where the economy is headed in 2012.
The bank had guided to post 25% growth in advances in FY12 and it maintains the same. "We are giving interest on retail advances and there is a robust increase in the retail advances growth," Bhat explained.