Focus is on less capital intensive segments, retail & MSME segments, says IOB
Partha Pratim Sengupta, MD & CEO of Indian Overseas Bank, in an interview with CNBC-TV18, discuss the numbers and outlook for the company going forward.
Sengupta said, “This is a day where we have achieved a milestone because last time the annual profit was achieved in 2014 and after six years we have once again achieved an annual profit of Rs 831 crore. Last March we had posted profit after 18 quarters losses and in this year continuously we have been progressively increasing our profits.”
On slippages, he said, “Slippages that we have seen around 3.28 percent, it mostly came in the last quarter after the Supreme Court judgement.”
On net interest margin (NIM), Sengupta said, “Net interest margin for the year as a whole came at 2.39 percent and the fourth quarter was at 2.22 percent. Because of competition and all we had to give lower rate of interest and that is the reason this has come up and in the Q4 there was a sudden spike in the NPAs after we booked the entire year’s NPA during the Q4.”
Talking about privatisation, Sengupta said, “I am not aware of any thing in this regard. Our aim is to make the institution strong. That is only one aim with which we all are working so all my employees are just working to make the institution and take it from strength to strength.”
On credit cost guidance, he said, “We are focusing more on less captive intensive business, we are focusing more on the retail, MSME and agriculture segment and very selective corporate credit growth and also keeping our exposure very limited.”
“Credit cost for our bank is around 3 percent and going forward our target is 2 percent.”