INSUBCONTINENT EXCLUSIVE:
individuals, but missed expectations as its only large corporate loan to Infrastructure Leasing and Financial Services (ILFS) turned sour,
forcing its chief executive officer to end bets on big companies.
Net profit rose to Rs 331crore from Rs 300 crore a year ago, lower than
analyst expectations of Rs 527 crore
The bank made a 100 per cent provision for its Rs 385 crore loans made over two years to ILFS
This was only large loan we had given
It was a AAA company and a secured loan
Investors used to tell us that all our loans are unsecured and we went for a secured, highly rated loans
Gross NPA's increased to 2.4 per cent of loans from 1.7 per cent and provisions jumped to Rs 378 crore from Rs 123 crore.
Net interest
income (NII) or difference between interest earned from loans and that paid on deposits grew 54 per cent to Rs 1,125 crore from Rs 732 crore
CASA ratio of total deposit improved to 41.4 per cent from 33.2 per cent a year ago.
Micro loans make 86 per cent of bank's loan book with
loans to small enterprises of ticket size less than Rs 10 lakh adding up to Rs 1,420 crore of loan book
said.
Earlier this week, micro finance institution turned bank, agreed to buy home loan company Gruh Finance in an all stock deal which
would help bank reduce promoter holding as dictated by regulator
Ghosh said bank will hence forth shy away from large ticket corporate loans and continue to lend small ticket loans to enterprises and
affordable housing segment.
