CUB sees slippages flat or tad lower

City Union Bank Ltd. said it expected total incremental slippages for FY22 to remain flat or slip slightly below those of last fiscal, with a few quarterly spikes.

“We are on track,” said N. Kamakodi, MD & CEO, said in a call with analysts. “In Q1, the bank had a slippage of ₹482 crore and slippages were front loaded. We feel it should be moderating going forward,” he added. In Q1, the bank had recovered ₹101 crore comprising of Rs.82 crore in live account and ₹19 crore from the technically written off accounts (₹76 crore in live and ₹34 crore technically written-off) Mr. Kamakodi pointed out that the recent lockdown had also played spoilsport as it impacted recoveries as the registration department and the courts were not fully functional.

“Courts are slowly coming back to normal functioning. We expect recoveries to improve in the second half... because of our expectations on improvement in legal procedures particularly in taking possession [of] and selling properties through SARFAESI action,” he said.

He asserted that the current-year performance was almost on expected lines, despite the COVID-19 second wave.

Credit growth achieved in Q1 was 5% on a year-on-year basis. Growth came mainly from gold loans.

“We [will] push the growth pedal only when the environment becomes conducive for... normal advances. We expect there will not be any third wave; at the same time we are cautious,” he added.

Mr. Kamakodi said that currently the service sector was more affected compared to the manufacturing sector. All these sectors have not yet come back to normalcy; it would take a few more quarters to see them back on track, he opined.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Oct 16, 2021 12:31:44 PM |

Next Story