KEY POINTS FROM Q1 FY18 CONCALL
Apart from the financials discussed in concall
- Npa was high due to a steel a/c with which bank was dealing with from last 10 years turned bad this quarter.
Total Exposure of Steel company to banking sector is Rs.3000Cr
And Share of KTK bank was Rs.122cr & Provision for same Rs.18cr
Mgt Expects this account to get upgraded and therefore it was only temporary effect.
Component of NPA'S as of june 17
65% of NPA represent SUBSTANDARD ASSET requiring 15% provision
Target of 2% NNPA REMAINS INTACT.
Precaution against slippages- Credit Monitoring Department For Loans more than Rs 1Cr and regional Managers for less than Rs.1cr
Regular review of all account and have recovery strategy to recover the account.
No account for ARC in Q1
Fully Provisioned Gross Npa - Rs.32.91Cr
3 a/c in SDR out of which 2 have got resolved (Rs.378cr Exposure of 2 a/cs Resolved)
-Have exposure of Rs.49 Cr. to 1 out of 12 accounts identified by RBI
- 7 a/cs under 5/25 scheme - Exposure of Rs.195Cr.
- Target of 15% minimum credit growth this fiscal
- Identified 117 branches to implement SPECIAL CREDIT AUGMENTATION STRATEGY
- Street level Executive Targeting across India for Credit Growth.
Overall Management seems confident enough of achieving 2% NNPA target by Q4 FY18 and remains committed towards achieving VISION 2020.
Especially CEO Mahabaleshwara MS is passionate to take Karnataka Bank to new Heights even in his interview to ET , the statements given by him were very bold although seems to be far from reality but not impossible.
NOTE: These are highlights of concall may have missed some points.