'A slowdown in credit in real estate and consumer loans'

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: your strategy to check delinquencies?

As regards credit disbursement to sectors like agriculture, SSI and SME are concerned we are continuing to see the growth.

Coming to the delinquency factor, as the interest rates are high, there could be an impact. But, I do not see any undue concern as far as the delinquency is concerned.

For example, let me tell you, in the housing loan segment, we have pegged the interest rate at its existing level for all loans upto Rs 30 lakh. Even the fixed loans are being disbursed at the same rate. Therefore, the current increase in the PLR, which was done in the second week of August, would not impact the interest rate on the housing loans. Similar is the case for other loans like education and auto. So, even though there is a little bit of squeeze on the retail capacity of real estate, I don’t think it will result in large delinquencies, as they have been under control. If you look at our first quarter results, most of the banks have been able to reduce their NPA level.

One of the important measures being taken by us to contain delinquency is to ensure that the identification of the borrowers itself is done with lot of care so that subsequent problems do not arise.

We would also avoid low quality assets. Secondly, we do follow up by credit monitoring. The credit monitoring is also being done with lot of appropriate follow-ups. With the technology support the bank follows a rigorous process.

Are you likely to take hits in your profitability due to mark-to-market (MTM) losses as reported in the first quarter?

We have already made a provision of Rs 181 crore during the first quarter because of MTM losses. After that, we have seen improvement in the interest income.

As on June 30, when we made the provisional requirement calculations, the 10-year benchmark was about 9.43%. It has subsequently come down and it was hovering at around 9.11 % at the moment. Therefore, obviously there is a provision write-back possibility in case the interest rate rules at this level.

Will you go for high cost deposit mobilisation to meet your demand for resources?

Mobilising of resources is a function which is related to both growth and liquidity management. Depending upon the avenues of requirement availability, the bank will take appropriate steps.