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Karnataka Bank

I welcome back you're watching trading our well it's a day to be a banking stock six-tenths of a percent higher on the Nifty bank and let's head straight to the MK confluence and get a get chatting with a banker Mahabaleshwar ms the md and CEO of karnataka bank now joins in hi sir good morning to you and thanks very much for speaking with us we haven't spoken to you actually since your numbers came out so just a few Quick points on your q1 numbers one I want to ask is that your slippage is while they've come off just a tad it remains still quite high close to that 500 Crow's odd mark what's the outlook now for the rest of FIA team yeah see we have been focusing on the growth management as well as distressed asset management and during the q1 we have achieved a reasonably satisfactory performance in these two friends and going forward what I am looking at is m5 Has been quite satisfactory m4 and m5 also and m6 looks to be very quite positive as far as the traction of the credit and as far as the slippage is concerned we have been able to have a moderate slippage in the QA m4 and m5 also looks to be positive for the m6 there has been some recoveries in the areas especially the borderline cases and after all the bridge the 770 branches and 12 regional offices we are focusing more on the credit growth as The last prevention of the slippage and recovery of the existing account so having said that we are also focusing on the casa growth the the new addition to the casa number is happening as per our expectations and you may be aware of the fact that we have recently introduced four variants for interest variance to our ESP products also so that has helped me to rationalize the interest all flow in the ESP sectors has been could you give us some outlook for the Folia can you do that an hour for how old advances grow yeah yeah yeah slippages yeah as far as as I said the current years I had given five priorities areas one is the credit growth second one is the stressed asset management third one is Casa fourth one is our other it dystrophy based income management and as well as the the para banking activities initiatives and technology-based of products so these are the five areas very we have been Focusing and as far as credit is concerned I am still holding on to my original statement of credit growth of 15% of plus and the asset quality wise I am still holding on to that GNP of around 4% and nnp of around 2% even though in the first quarter as you all know the first quarter generally used to be a stressful stressful quarter and we are also not an exception for that but going forward as I said young for to m12 appears to be a positive one for Karnataka Bank as far as the asset portfolio creation and also are the quality of the assets do you believe you've provided adequately in terms of provisions provision should not be a problem see the plus point as far as my bank's asset portfolio is concerned 94% of our advances are fully secured as a result even if there is a slippage in the first quarter or at the first instance fortunately for me these assets will not slip to either ds3 or loss Asset and they have to pass through that passage of substandard to ds2 LS so that gives me some the Headroom for providing the provisions is concerned 15% would be more than sufficient what is happening is that we have been attracting all those borderline cases I think you may be remembering that last time when I spoke and when I come on when I came on media I told that we have about 1% of our total advances under the borderline So in this bottling cases as of know when I am now almost in the end of m5 around 80% of these borderline cases have already resolved and hardly 10% slipped to an p.m. and another 10% is being is still under the resolution mode and still I have another one month and I feel that we should be able to perform in the management of the stress cassettes portfolio as per our original plan ok so just one final question I know you have already clarified on this Earlier but the buzz grows that perhaps there could be a Cabinet decision on PSP consolidation as early as today itself in the past you have denied that Karnataka Bank is an acquisition candidate has anything changed since then anything that you might have heard of madame ah I am NOT in the PHP sector I am still in the private sector by sector and we are growing strong sorry size of my head please accept my apologies with you know if we didn't Deep all private sector banks I mean if I look at South India Lakshmi car over federal and election me City Union you know your attractively positioned your one of the cheapest banks I mean if you look at price to book you look at market cap to business have you I mean has there been any interaction with investors on any sort of investors interaction is a continuous process in fact I have already started one investors relations sell very recently And this is mainly precisely for that purpose only because we have to be in direct touch with all our investors you may be aware of the fact that Karnataka is not promoted by any group or any major that is the reason why there's always this talk that you may be open to take oh it's been the wrong ages no it is not the case it is a shareholding is widely spread and I have around 1 lakh 40,000 shareholders and so the corporate communication is an Important area that is why we have strengthened that and of course we have our Warner growth strategy the transformation change which my board has deliberated on this we are now in the process of implementation of that transformation change as per our vision 2020 yes for the first two years of our vision 2020 that is the five years program the growth was not up to the expected level but still we have another three years Let me totally focus on that and come up to the expectation of all the stakeholders okay no immediate plans for any M&A very scattered shareholding so you're actually putting that argument about nor identifiable promoter on its head and saying because there is no one lot chunk held by any investor it actually could be tougher to do rather than easier to do I mean any potential M&A but you're very focused on growth and your plan for 2020 vision 2020 thank You very much appreciate your joining in on the show today we will take a very quick break here we focus on emphasis

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