Bank of India, whose net loss narrowed and net non-performing assets improved in the January-March quarter, wants to rebalance its portfolio and focus on the retail sector in coming years to boost profitability, MD & CEO Dinabandhu Mohapatra told reporters after announcing the fourth quarter results. He is also hopeful of NPAs improving in the coming quarters. Edited excerpts.
What are your priorities as the new MD and CEO of Bank of India?
Our priorities are NPA management, augmentation of CASA, re-balancing of advances in favour of retail portfolio and stable growth in quality assets. Capital conservation and capital mobilisation is another area that we are looking at. The bank also has plans of monetisation of non-core assets and capital rationalisation initiatives during the current financial year.
We have initiated new arrangements through which we will be tracking the NPA accounts – the ones that we think are not going be viable. We are also aiming at reviving units that can again become performing assets. Resolution and recovery will be our approach for NPA management.
What is your outlook on the bank’s NPA?
Our coverage ratio has improved to 61%, one of the highest in the banking sector. We started the NPA identification process much before other banks. With the time-bound initiatives taken by the government and the RBI, resolution will be much faster in coming days. We are taking different approaches for large accounts, medium accounts and small ones. We are sure in coming days our NPA position will be quite comfortable. Going forward, our position will be much better than other banks. Slippage will be less than last year.
What is your target in terms of re-balancing of assets?
Our approach will be re-balancing of assets in the next two years. The bank is aiming to reach 48% corporate and 52% retail in the years to come, from 49% retail and 51% corporate at present. We will be moving towards retail and loans below Rs 5 crore. So, more than growth, re-balancing and profitability will be our focus. We are not thinking of winding down any assets on the corporate side, but will re-balance the entire portfolio.