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“Non-performing assets (NPA) resolution ordinance of central government and the prompt correction action initiated by Reserve Bank of India (RBI) are in right direction and are going to help the banks to attempt this NPA menace in its right perspective”, Mahabaleshwar MS, MD & CEO, Karnataka Bank told CNBC-TV18.
The bank saw a drop in gross NPA levels to 3.44 percent in FY16 from 2.95 percent in year before. This was mainly because of the bank's limited exposure to steel companies and large corporates, says Managing Director P Jayarama Bhat.
In an interview to CNBC-TV18, P Jayarama Bhat, MD, Karnataka Bank, talks about the company‘s third quarter results and its future outlook.
Karnataka Bank has recovered Rs 175 crore this quarter against Rs 102 crore during the same period last year, the bank's CEO P Jayrama Bhat said.
P Jayarama Bhat, MD, Karnataka Bank, in an interview with CNBC-TV18 said that the bank was able to contain NPAs this quarter due to recoveries that happened in the last quarter.
Karnataka Bank's managing director P Jayarama Bhat expects gross non performing assets are likely to improve to 2.25-2.50 percent by 2014-end.
Karnataka Bank has set itself a gross NPA target of less than 2.5 percent and net NPA target of less than 1 percent for this financial year.
Jayarama Bhat, MD of Karnataka bank expects the FY14 net interest margin (NIM) to be around 3 percent on the back of its profit falling 19 percent.
The profit before tax gained 77 per cent y-o-y to Rs 117 crore. In an interview to CNBC-TV18, P Jayarama Bhat, MD of Karnataka Bank said that The gross NPA has gone up from Rs 729 crore to Rs 781 crore. However, two accounts are pending in CDR and if it is considered then the gross NPA level will come down.
P Jayarama Bhat, managing director and chief executive officer of Karnataka Bank says, he sees net interest margin (NIM) over 3% by March 2013.
Managing director of Karnataka Bank P Jayarama Bhat tells CNBC-TV18 that they aim to grow total advances by 22% year on year for FY12.
Speaking to CNBC-TV18, P Jayarama Bhat, managing director of Karnataka Bank, said that the bank expects credit growth of 25-30% and deposit growth of 20% in FY12. The bank has also increased its base rate to 10.25% with effect from today.