Growth Outlook: The bank is looking at growth of 20% YoY in FY13 higher than
projected by most other PSUs. The areas of focus are working capital finance,
SME and retail. The SME segment is expected to grow at 25%-30%. In large
corporates, roads sector offers some opportunity to grow + working capital
requirement for completed project will also aid growth.
Asset Quality: The bank is looking at higher gross addition to NPA in FY13
against ~Rs32bn in FY12 (2.5% of advances). Though monsoon has improved offlate,
management highlighted that its Agri portfolio is more concentrated in
southern states which have mostly received adequate rainfall.
Other highlights: (1)Bulk deposit for the bank is at ~28% and bank is allowing
some higher cost deposit to mature to comply with FinMin’s directive. (2)
Capital Infusion: Assuming 18%-20% growth, management expects ~Rs220bn of
capital requirement through FY18 and for FY13 management expects ~Rs15bn
of capital infusion by the government.
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