Banks are positive on some of the steps taken by the Reserve Bank (RBI). They are also positive on differential banking and the need to create a central repository for corporate exposure.
In an interview to CNBC-TV18, SL Bansal, CMD, Oriental Bank of Commerce said that before July 15 most of the banks were sitting on reasonable profits, then the yields started moving northwards and banks were sitting on the huge losses. However, now most of the losses have been taken care of by RBI's decision on Tuesday.
Cash flows are under a lot of pressure which has resulted in a slight increase in gross NPA and net NPA, says OBC CMD SL Bansal. Meanwhile, the bank aims to maintain net interest margin in the range of 2.85-2.87 percent ahead.
SL Bansal, chairman and managing director (CMD) of Oriental Bank of Commerce (OBC) speaks to CNBC-TV18 about the government's decision to increase the export subvention rate from two to three percent.
Most of the PSU banks will follow the suite of cutting key interest rates, said SL Bansal, CMD of Oriental Bank of Commerce. Finance Minster P Chidambaram had asked the banks to cut rates to boost investor sentiment in the economy.
Banks are believed to have restructured loans of Rs 14,700 crore given to Haryana state power distribution companyt (discom). In a consortium of 11 bankers Oriental Bank of Commerce (OBC) is the lead banker with Rs 2,000 crore exposure.
Committee headed by G Padmanabhan, ED, RBI, has recommended that export credit be allowed to be a part of priority sector lending (PSL) for all commercial as well as foreign banks for a period of three to five years
B Nayyar, ED, Oriental Bank of Commerce (OBC) says, in an interview to CNBC-TV18, that the balance-sheet has been strengthened with 63-percent provisioning and adds that a 25-bps cut in deposit rates is likely.
SL Bansal, CMD, Oriental Bank of Commerce and RK Dubey, chairman, Canara Bank, in a discussion on CNBC-TV18, say that they expect no default or delay in payments from the Punjab Electricity Board and have decided not to fund discoms that are financially unviable.
SL Bansal, chairman and managing director Oriental Bank of Commerce (OBC) explains, on CNBC-TV18, that the guidelines will significantly safeguard banks and restore an element of responsibility in the process of debt-restructuring.
The Q3 margins stood at 2.84 per cent as compared to 2.79 per cent quarter on quarter basis. In an interview to CNBC-TV18, SL Bansal, Chairman & MD, OBC said, 'We are expecting that our margin in the next quarter will be much better. It should be close to 2.95 per cent".
SL Bansal, CMD, Oriental Bank of Commerce, says that net profit of most of the banks will show subdued growth in the third quarter.
With monsoons giving a slip this time, banks having exposure to agriculture loans may have reasons to worry.
Talking about the bank‘s net interest margins, SL Bansal, CMD of Oriental Bank of Commerce said, "We closed last financial year at 2.68%. We had given a guidance of 3%. Now we have moved to 2.76% and I am confident going forward we will be crossing 3% margin for FY13."
CMD of the Oriental Bank of Commerce SL Bansal tells CNBC-TV18 that the debt restructuring of DISCOMs will ensure that they become profitable in three years.
In an interview to CNBC-TV18, SL Bansal, CMD, Oriental Bank Of Commerce explains it is important for banks to set the tone and change the mood of the economy by sending out a positive signal that will stimulate increased investment.
SL Bansal, chairman and managing director of OBC in an interview to CNBC-TV18 spoke about the latest happenings in the company and the road ahead.
In an interview to CNBC-TV18, SL Bansal, chairman and managing director, OBC says the worst is over and is optimistic that the bank will be on the upward trajectory.
The Reserve Bank of India’s governor today has proposed to separate the chairman and managing director or CEO position in PSU banks. Sharing their views and possible reason behind this move to CNBC-TV18, experts KR Kamath, chairman of Punjab National Bank and BD Narang, ex-chairman of Oriental Bank of Commerce read the road ahead.
Many banks, including the public sector banks, have bleeding for a while now, but on Thursday they intensified the losses. Ex-chairman of Oriental Bank of Commerce (OBC), BD Narang ranked banks in India at a much better place than any other banks around the world.
In an interview with CNBC-TV18, SC Sinha, ED, Oriental Bank of Commerce said the government has indicated it would be increasing its holding from 51% to 58%.