Apr 25, 2023
‘Will recover nearly Rs 1,800 crore from written off accounts each quarter’, says Canara Bank CEO
Public sector major Canara Bank will focus on recovering more than Rs 1,800 crore from written off accounts each quarter this fiscal, MD & CEO K. Satyanarayana Raju told FE in an interview. Raju speaks about the bank’s business growth plans for current fiscal, e-rupee transaction volumes and on privatisation talks of two more state owned banks. Edited excerpts:
What is your outlook on credit growth for H2FY24?
The present demand in retail, agriculture and micro, small and medium enterprises (RAM) sector will likely continue, so our focus is more towards RAM. We will continue posting more than 5% quarter-on-quarter (QoQ) and around 13%-14% year-over-year (YoY) growth in RAM segment.
What are you doing to raise other income as it moderated in Q2.
We are focusing on fee income. We automated all 218 of our service charges and are getting good incomes. Secondly, we are also focusing on our non-fund-based business. We have centralised issues like TAT (turnaround time) and we are encouraging some field officials also to take decisions on non-funds-based business. Our credit sanctions are increasing due to focus on lower TAT.
Further, we are also very focused on recovery from written off accounts. We are holding fortnightly meetings, review is happening at highest level to improve recoveries. There is chances of windfall gain from National Company Law Tribunal (NCLT) accounts, but we are not counting on that. In every area we have created a ranking system across various parameters. Every month that ranking will be announced openly and it will be recognised by MD and EDs in the national level conference.
You recovered nearly Rs 1,800 crore from written off accounts in Q2. Will the pace continue in H2?
We are expecting to recover same amount in Q3. Now at this level we cannot afford to recover less because there is no alternate source to compensate, treasury gains are lower. We are totally dependent on core banking income.
Will CASA continue growing sequentially in Q3?
Yes, we are definitely aiming for 1% QoQ growth in CASA. Last quarter’s initiatives have started showing results. The product for salaried class customers is performing well. On April 1, outstanding balance of salaried class customers was Rs 4,400 crore, and as on date it is around Rs 6,700 crore, an incremental growth of Rs 2,300 crore from just this product.
What are your branch expansion plans for H2?
On an overall basis, 275 branches will be opened during the current financial year and 60 branches have already been opened.
Is their traction on CBDC transactions?
We are seeing traction. Today we are witnessing total central bank digital currency (CBDC) retail transactions of around 3,000 per day. One third of these transactions are interoperable with UPI QR code.
The Centre is reportedly moving ahead with privatisation of 2 more PSU banks. Have you received any communication in this regard?
So far there has not been any such discussion with us. Nothing in that direction.
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