City Union Bank expects to perform equally well, if not better, in this financial year as compared to the previous year, N Kamakodi, managing director and CEO, said on May 31.
“For the current year (FY22), we expect that the slippage ratio will be better than what we saw during the full year (FY21), but overall the current year will be equal, if not better, compared to last year,” said Kamakodi told CNBC-TV18.
The bank’s asset quality improved during Q4 of FY21 with gross nonperforming asset (NPA) down at 5.11 percent compared to 6.1 percent, QoQ. However, City Union Bank’s net interest margin declined sharply and the lender also reported lower provisions that aided the profit after tax (PAT) growth.
Talking about the bank’s growth prospects, Kamakodi, “We hope that after things come back to normalcy, the situation should get slightly better than whatever we saw in the financial year 2021.”
For the entire management interview, watch the video