After 6 years, we are in for fresh start, says Partha Pratim Sengupta, MD & CEO of Indian Overseas Bank| INTERVIEW

Indian Overseas Bank (IOB), which precocious came retired of the punctual corrective enactment (PCA) by the RBI, says it volition chalk retired strategies to accelerate growth. Partha Pratim Sengupta, MD & CEO, says since immoderate earlier curbs person been done distant with, the slope volition beryllium looking astatine expanding branches oregon restructuring immoderate of them. Excerpts from his virtual enactment with the media:

What are the bank’s plans station exiting the PCA?

After being successful PCA for astir six years, we are present looking for a caller commencement to turn much successful the coming quarters and decidedly the slope would beryllium overmuch stronger successful future. Since the restrictions connected subdivision opening, recruitment of quality resources and CSR activities person been removed, we volition look astatine taking actions connected those fronts. There has been nary recruitment successful the past six years, and the bank’s unit spot came down to astir 22,000 from 28,000. In a mates of months, we volition beryllium revamping our subdivision enlargement and recruitment policies.

What were the factors that contributed to the bully show successful the 2nd quarter?

It has been an wide growth, I won’t accidental a peculiar conception has fixed growth. It has been equitably distributed among retail, agri, MSME and firm segments. If you  look astatine the performances of the past quarters, we person been steadily growing. Due to the Covid-19 impact, the economical maturation of the state got muted and hence determination was nary scope for recognition maturation connected the slope side. But station the vaccination drive, we are seeing affirmative outlook connected the economical front.
Your nett involvement borderline (NIM) declined during this quarter.

NIM, connected a q-o-q ground has gone up, but yes, connected a y-o-y basis, it has declined to 2.43% from 2.57. In the June quarter, our NIM was astatine 2.34%. If you look astatine the involvement rates, astir each the bigger banks person reduced the involvement rates.

What were the slippages during the 2nd quarter? Any plans to rise capital?

We had a slippage of Rs 1,400 crore, contributed by 2 to 3 companies. Out of it, 60 to 70% was borne retired of an NBFC. The slope had made astir 80% provisions connected these accounts. The slope is not anticipating immoderate large slippages successful the coming quarters, immoderate slippages had happened were from the ticker list. On the superior front, the slope would beryllium raising up to Rs 1,000 crore during Q4 to conscionable tier-II superior norms.

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