COVID-19 impact: SME sector would be challenging, says Federal Bank
Federal Bank sees profit-booking in trade after posting an operationally weak fourth quarter. Shyam Srinivasan, MD & CEO of Federal Bank, discussed the results.
Federal Bank sees profit-booking in trade after posting an operationally weak fourth quarter. Shyam Srinivasan, MD & CEO of Federal Bank, discussed the results.
He said SME sector is going to be challenging. “I would not just put it to lockdown per se. It is the face of the event. If businesses slow down, certainly the more marginal, the more regular income from business people will have a challenge and we are pretty mindful of that,” he stated.
“I would believe that by the early part of July, some kind of situational changes both in the business conduct and relief people will come through,” he added.
In terms of loan growth, he expects things to pick up Q3 onwards. “April, May has been muted or way lower than our normal runrate. I would think the greater part of May is going to be a struggle but we will see."
"Last year, April, May, June and July were tough months and we still picked up quite significantly at the backend of the year. So we will see. Right now the focus is certainly not about just growth, it is to preserve and ensure that everybody and the institution are safe. But the growth opportunities will come, Q3 onwards things will pick up,” he added.
For the full interview, watch the video…
(Edited by : Bivekananda Biswas)
First Published: May 17, 2021 4:41 PM IST
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