Cleaning up legacy book top priority; aim to grow gold loans, says Murali Ramakrishnan, MD & CEO, South Indian Bank

Secondly, we made an further proviso of Rs 160 crore. We needed to cleanable up the bequest portfolio.

South Indian Bank (SIB) is connected the way of betterment contempt reporting a nett nonaccomplishment of Rs 187.06 crore for Q2, says Murali Ramakrishnan, MD & CEO. He tells Rajesh Ravi successful an interrogation that cleaning up the bequest publication is the apical precedence and the publication size whitethorn spell down for a portion earlier bouncing back. Excerpts.

SIB has reported a nonaccomplishment successful Q2, compared to a nett net of Rs 65 crore successful the year-ago period. How bash you reappraisal the quarter?

The nonaccomplishment is fundamentally owed to 2 reasons. One, alteration successful accounting owed to the RBI direction. Other income came down this quarter, with the depreciation of concern present being shown successful different income. Recovery successful written-off accounts is present shown successful provisions and contingencies alternatively of different income, and these besides led to simplification successful different income. Secondly, we made an further proviso of Rs 160 crore. We needed to cleanable up the bequest portfolio.

What is the outlook for the existent 4th and guidance for the fiscal?

I americium sticking to my basal that it volition beryllium arsenic atrocious arsenic past year. The full slippages I americium expecting for the fiscal is Rs 2,300-2,500 crore. We had slippage of Rs 879 crore successful Q1 and Rs 531 crore successful Q2. The bully quality is we person done a bully betterment and upgrade successful the archetypal fractional stood astatine astir Rs 600 crore. In the 2nd half, I americium expecting betterment of Rs 600-900 crore.

Do you spot the full publication size coming down this fiscal?

We person done a implicit rearrangement and revamping of doing things. And we person seen traction successful assorted businesses since July. We are creating a amended slope with a bully book. The incremental portfolio is of higher quality. I americium addressing the bequest contented and recovering more. My full plus publication was Rs 58,309 crore arsenic of September 30, 2021, which came down YoY from Rs 65,349 crore. My publication size volition beryllium connected the incremental maturation of caller loans and slippages from my bequest book. From April to October, we lent adjacent to Rs 10,000 crore.

Do you spot further maturation successful the golden indebtedness portfolio?

We did 11% year-on-year maturation successful golden and I judge we tin bash much with the revamped structure. My full plus publication is Rs 58,309 crore, of which full golden successful Q2 was Rs 9,737 crore, compared to Rs 8,500 crore successful the year-ago period. Gold indebtedness is 16.7% of the full book, compared to 13% successful Q2FY21. I americium aspiring it to beryllium 20-25% of the full indebtedness book. There is hardly immoderate NPA successful golden for us. We person tied up with a fintech for co-lending and person appointed dedicated officers for the portfolio. The mean LTV of the portfolio is 71%.

Are you looking astatine subdivision expansion?

The precedence is to marque branches much productive and accountable. The aboriginal of banking is integer and we are looking astatine consolidating branches. We volition unfastened branches successful places wherever we don’t person overmuch presence.

How is the effect to the recognition card? Any much collaboration with fintech?

We person fixed 5,000 cards successful necktie up with FPL. Traction is happening successful cards. We are looking astatine tie-ups with fintech for golden and retail loans.