Looking to maintain NIM at around 3%: K Venkataraman, Karur Vysya Bank

In an interview with ET Now, K Venkataraman, MD & CEO, KarurVysya Bank, shares his views on the latest results. Excerpts:

ET Now: Firstly if you could walk us through the quarter because both on the NII, the PAT as well as the provisioning figure, the numbers have disappointed a wee bit.

K Venkataraman: I would not say it is really a big disappointment as far as we are concerned. It has been going the way we have been expecting. Net interest income has grown by 19% for the quarter and for the year, the net interest income has grown by 26% and other income grown by 41% for the quarter and it was 29% for the year as a whole. Profit before tax grew by 15% and net profit grew by 9.7% to Rs 550 crore for the year as a whole. Now if you see, the provisions are slightly on the higher side because we have maintained our PCR at 75%. That means that we have taken slight reduction as far as profit is concerned, but then we maintained the quality of our advances book at good level.

ET Now: Very quickly then if you can talk a little bit about the restructured assets this quarter and the total restructured assets.

K Venkataraman: The total restructured assets are 1088 crore at the end of the year. This includes the entire facilities of the restructured accounts and not only the restructured facilities.

ET Now: How do look at the margins this quarter and what band are you targeting the margin to handle for the next few quarters?

K Venkataraman: Our NIM for Q4 was 3.06 and for the year as a whole is 3.03. We proposed to maintain our NIM at around 3% all the time. That is what we are looking for.