Are you looking at revising your banks credit growth target for 2010-11
We believe we can hit a credit growth of 23-24% by March 2011 even though there is an upward bias to interest rates. Our incremental credit-deposit ratio currently is 76% and so we dont need to revisit our credit growth targets.
The bank has made some provisions for NPAs in the December quarter....
Our net NPAs are 0.36% and we have restructured loans worth Rs 6,000 crore so far in 2010-11. About Rs 550 crore worth of NPAs have resulted from the restructuring and the slippage so far is Rs 391 crore. In the December 2010 quarter, we made provisions worth Rs 206 crore as against Rs 243 crore in corresponding period of 2009. Our provision coverage ratio stands at 85%.
Do you plan to raise capital
Our capital adequacy ratio (CAR) is 12.45% and we feel that liquidity is sufficient so there is no need to raise capital just now. We have a headroom of Rs 6,000 crore in tier-I capital and Rs 14,000 crore under Tier-II capital.
Any plan to borrow overseas
We have recently completed non-deal roadshows in Singapore and have met prospective investors. We plan to raise $ 500 million through medium term notes (MTN) perhaps in the south-east Asian markets and have appointed arrangers like Standard Chartered, Barclays and RBS. The money will be used to fund our overseas branches.
Are you looking at the subsidiary route for overseas expansion
We have a good presence in 25 countries through both subsidiaries and branches and our international operations contribute to 24-25% of our total business. We are now looking to open 5-6 branches in the east African countries like Kenya, Uganda and Botswana, where we are already present through a subsidiary.
We have nine branches in London and plan to open one more. We have four electronic branches in Dubai and Gulf regions.The joint venture with IOB and Andhra Bank for Malaysia is at an advanced stage.