homevideos Newsfinance NewsSee a rise in slippages in H2FY20, no need for capital raising, says Axis Bank MD & CEO
See a rise in slippages in H2FY20, no need for capital raising, says Axis Bank MD & CEO
In an interview to CNBC-TV18, Amitabh Chaudhry, MD & CEO of the private sector bank spoke at length about how much more stress can come and where will it come from.
In an interview to CNBC-TV18, Amitabh Chaudhry, MD & CEO of the private sector bank spoke at length about how much more stress can come and where will it come from.
“We have maintained a steady stance that from Q2 itself that we will see slippages rise in the retail business in the second half of this financial year. I expect the slippages to remain and every financial player has reacted to this crisis,” Chaudhry stated.
He further noted that slippages in Q4 are likely to be lower as a large part of it has been seen in Q3. The bank did not give any guidance due to volatile conditions but will look at inorganic opportunities at the right price, Chaudhry said.
However, some of the risks which are out there are the fact that – is the second-wave of COVID coming in, could it somehow impact the recovery momentum we are on, he added.
On capital front, he said, “We raised capital at a time when there was certain suggestion from the market as well as our regulator that it is important to beef up your capital, which we did. We are on the highest capital ratios as a bank in our history.”
“Looking at the growth opportunities and the kind of, hopefully, the profits that we can generate in the next couple of years, we do not see any need for capital at this point in time. Yes, we have an approval in place to raise Rs 5,000 crore and if a great deal to come our way then as a bank, as a management team and as a board we should look at it but I do not think transaction is eminent at any point,” said Chaudhry.
For full management commentary, watch the video
(Edited by : Pranati Deva)
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