It was a good show from Central Bank of India in the second quarter with the lowest slippages in 6 quarters and the highest net interest margins (NIMs) in 6 quarters. Both these have driven profit after tax (PAT) to the highest level in 16 quarters.

Pallav Mohapatra, MD and CEO of Central Bank of India, said, “There are some external factors and so it will be some 5-10 percent more, but we have almost controlled the slippages.”

CBI's exposure to NBFCs, excluding the conglomerate, will be around Rs 9,000 crore and, including the conglomerate, it is around Rs 12,500 crore, he said.

"One big NBFC which is in the news, if I take out around Rs 1,000 crore from that, my non-performing assets (NPA) percentage in the entire NBFC portfolio will be around 2-2.5 percent,” he added

Mohapatra further added that they have made provision on the investment book but are yet to make provision on the loan book of the stressed NBFC. “Whatever provision will come, we will be able to set off through other income which are generating. In all we have provided around 15 percent including the investment book. Some more has to be provided; that particular provision in the third quarter we will be able to absorb,” he said.

On the margin front, he said, “Interest income definitely in the next two quarters will be much more than in the first two quarters. The total loan book will also grow.”

Mohapatra said that there may be a slight increase in credit cost in Q3, but it will not be a major one. He also expects the loan growth for FY20 to be at 8-9 percent including corporate and RAM (retail, agriculture and MSME) book.

“In the RAM book, the retail segment, especially in the housing segment, we are expecting in the remaining two quarters, there will be a huge up tick which will result in around 12-13 percent growth in the retail which will be mainly pushed by the housing segment,” he added.