The highest priority of Kanara Bank in the future is to increase 4 % points (PCR) by 4 percent points, according to the MD and CEO K Sateranarayana Raju, which has already been achieved. According to an interview with AnuPreksha Jain, he is more than a long -awaited guideline for a liquidity coverage ratio (LCR), the expected credit loss (ECL), and project finance. Rewrite, a kind of influence. excerpt:
Q) The net income of Q3fy25 Kanara Bank has increased only 12 %. What were the factors behind this flat growth rate?
Our main focus is that all peer banks exceed 95 % in PCR (measurement of bank abilities that offset losses from defective assets), so it is still 91 %, so we will strengthen balance sheets. is. Therefore, even if it is not necessary, we provide sufficient provisions. As a result, our net income was flat. Our goal is to reach 95 % in the future quarter. In addition, our focus is on improving operating margins. This is increasing properly.
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Q) Is there a possibility that profits will be easier in the future?
I feel that net income will continue to increase at 10-15 %, but it is not low even if it is actually high.
Q) The gap between credit and deposit charges has dropped significantly. Has the rate already peaked? How are these rates affected because RBI is expected to reduce the price slower?
Rbi reduction in RBI can help you to grow your credit, but the deposit rate is determined by system fluid. Yesterday (Monday), after receiving feedback from a bank, the regulatory authorities proposed to inject funds to the system. We hope that these initiative will alleviate the flow of liquidity. If the liquidity becomes softer in the system, the deposit rate decreases. But we have to wait.
Q) How does a fluid coverage ratio, expected credit loss, and the expected guidelines for project finance affect bank balance sheet?
We are very well prepared for these guidelines. When the RBI comes up with these guidelines, rewrite the strategy to be isolated from all kinds of influence.
Q) How did the financial income work by improving the currencies and curing domestic yield? How will things change if there is a rate cut?
Since we are more focused on the core business, our income is insulated from such a shock on the financial front. The numbers have enough cushions, but we hope that each time such a problem occurs in the market, regulatory authorities intervene and the market is stable.
Q) Is there a financing plan?
There is no plan to raise funds in offshore, but for the domestic market, we have permission to raise 4,500 rupees through additional Tier-1 bonds. Among them, we have already raised 3,000 rupees. You can increase the remaining 1,500 rupees depending on the market situation.
Q) What is the target of RAM (retail, agriculture, MSMe) and corporate books by the end of March?
In the current quarter, it will be about 10-11 %. In FY2016, it is necessary to check the position of the last two months and see how the liquidity situation will evolve. Probably, we hope it may be the only current level. Given 10 % guidance.
Q) When can I expect a list of Canara Robeco?
It may occur by the second quarter of FY26. Currently, the process of appointing merchant bankers is on.
