What is your credit and deposit growth projection for FY14
Credit growth should pick up in the next two quarters. We had taken the path of consolidation last October, which we have completed. Now, the base effect of this will be seen. Along with that there is also 15% growth in the retail segment and we would expect it to go up to 20%. We expect loan growth to be as per the industry expectation of 15% and deposit growth also to be around that level.
Since the bank is raising deposit rates, how will it affect the net interest margin (NIMs) going forward
NIMs will be affected to some extent, but we need money to fuel credit growth which we expect to be higher in the second half of the year. In last four years, NIMs have been around 3.5%, but time has come to review this and work on lower NIMs, so as to enable growth. We expect NIM to be around 3.25% going forward.
Do you plan to tinker with the base rate
As we need to support growth, we do not intend to raise base rate. Our base rate will remain at 10.25%.
Any plan to raise funds from the market via qualified institutional placements (QIP) in future
The government will be infusing capital of about R500 crore that should keep our capital adequacy ratio at a decent level. We may not go to the market immediately to raise funds through QIP.
How does your restructuring pipeline look
I do not have the exact numbers, but it should taper down going forward as the economy is showing signs of a turnaround and our recovery measures have also improved.