City Union Bank is expecting some improvement in collection efficiency, said N Kamakodi, MD & CEO in an interview to CNBC-TV18.

He said things were beginning to look up for the bank, and that collections in October were at 90 percent.

“We feel things should stabilize where we are and probably even inch slowly, maybe another 3-4 percentage. Overall expectations in terms of slippages, we should be in a position to even slightly do better and this is where the collection efficiency currently looks into,” he said.

Kamakodi said that he expects 5-6 percent of their portfolio to get restructured. “Mainly they will be coming from the sectors like hotels, passenger transportation, retail sales and all where the opened in delayed fashion after the lockdown was lifted,” he said.

He further added that there is pressure on yields, but decline in cost of funds is aiding net interest margins (NIM). He said that the NIM should remain in the range of 10-15 basis points of current levels.

(Edited by : Santosh Nair)