Amitabh Chaudhry, MD & CEO of Axis Bank, believes that retail slippage will rise in the the third and fourth quarter of this fiscal.

He said, “I would expect the banks to show a higher retail slippages numbers in the third and the fourth quarter, corporate will be much more contained.”

On growth Chaudhry said, “GDP is definitely coming back. We see the recovery as uneven across various sectors because some of the sectors are yet to fully open up. On loan growth the overall trend seems to be improving.”

On margins Chaudhury believes there are a couple of things which are actiing as tailwinds and headwinds.

The headwind - there is excess liquidity in the system. "We have Rs 6 lakh crore of excess liquidity which we expect to go up to close to Rs 8 lakh crore so there is a huge pressure on rates. You are seeing pressure on interest rates," he said.

"On the other side you are not able to deploy access labilities which you have so in that sense there is a pressure on margins,” Chaudhry explained.

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(Edited by : Abhishek Jha)

First Published:Dec 7, 2020 1:40 PM IST