{"id":475,"date":"2019-11-22T10:13:54","date_gmt":"2019-11-22T10:13:54","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=475"},"modified":"2019-11-22T11:06:49","modified_gmt":"2019-11-22T11:06:49","slug":"corporation-bank-margins-to-expand-on-recoveries","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/11\/22\/corporation-bank-margins-to-expand-on-recoveries\/","title":{"rendered":"Corporation Bank: Margins to expand on recoveries"},"content":{"rendered":"\n<p><span style=\"text-decoration: underline;\">Excerpts from an interview of Ms P.V. Bharathi, Managing Director, and Chief Executive, Corporation Bank with CNBC-Tv18:<\/span><\/p>\n\n\n\n<p><strong>Update&nbsp;on the Indian Equity\nMarket:<\/strong><\/p>\n\n\n\n<p>On Thursday, NIFTY closed -0.3%\nlower. Among sectoral indices, NIFTY Metal (-2.2%), NIFTY Auto (-1.0%), and\nNIFTY FMCG (-0.6%) closed lower. While NIFTY Media (+4.1%), NIFTY Realty\n(+0.6%) and NIFTY Financial services (+0.3%) closed on a positive note. The\nbiggest losers were BPCL (-6.0%), Coal India (-3.4%), Tata Steel (-3.3%)\nwhereas Zee (+11.7%), Eicher Motors (+2.1%) and Dr Reddy (+1.4%) ended with\ngains.<\/p>\n\n\n\n<ul><li>Speaking about Essar steel judgement Ms P.V. Bharathi said that the\nEssar recovery which was long pending has now come. The bank expects that by\nNovember 2019 around \u20b91,300 crore will be coming in.<\/li><li>The bank had already targeted recovery of \u20b9 6,000 cr,\nincluding National Company Law Tribunal (NCLT) recoveries.<\/li><li>In the Essar Steel case, the bank has already provided 100% in respect\nof this account, so the entire amount of recovery will help to improve profit.\nIn this process, the net interest margins (NIMs) will also increase by 40-50\nbps.<\/li><li>The bank\u2019s exposure to Bhushan Steel is small, it is \u20b9150 cr. The bank has around \u20b92,500 cr\nexposure to Videocon.<\/li><li>The recoveries will increase profit; for the first half of the year net\nprofit was up 24%.<\/li><li>Total profit by the end of FY20 would go up to \u20b92,000 cr out of which \u20b91,300 cr will directly come\nfrom recoveries.<\/li><li>The NPAs are less than 6%, the bank has been able to bring it down to\n5.59% and by the end of FY20, it will be near 5.3%.<\/li><li>The targeted loan growth is \u20b91,30,000\ncr and at the beginning of the year, it was around \u20b91,20,000 cr. The bank has targeted 60% growth in RAM (Retail, Agri and\nMSMEs) and 40% in corporate.<\/li><li>Speaking about the merger, Ms P.V. Bharathi said that it is expected to\ntake place from 1 April 2020, once the process of valuation is over then swap\nratios will come out.<\/li><li>Ms P.V. Bharathi says this is peak period for retail home loan growth as\nwell as vehicle growth.<\/li><li>The total exposure to private sector NBFCs is \u20b94,000 cr and the&nbsp; exposure\nto Dewan Housing Finance Corporation is around \u20b9500 cr.<\/li><li>The bank has factored in around \u20b9750 cr of\nslippages in third quarter, last quarter it was \u20b9950cr.<\/li><\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Excerpts from an interview of Ms P.V. Bharathi, Managing Director, and Chief Executive, Corporation Bank with CNBC-Tv18: Update&nbsp;on the Indian Equity Market: On Thursday, NIFTY closed -0.3% lower. Among sectoral indices, NIFTY Metal (-2.2%), NIFTY Auto (-1.0%), and NIFTY FMCG (-0.6%) closed lower. While NIFTY Media (+4.1%), NIFTY Realty (+0.6%) and NIFTY Financial services (+0.3%) [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,174],"tags":[159,176],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/475"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=475"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/475\/revisions"}],"predecessor-version":[{"id":476,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/475\/revisions\/476"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}