Indian Bank posted its second-quarter earnings. The bank's net interest margin improved on a year-on-year and sequential basis. Asset quality also improved. Slippages have seen quite a decline, it is down around 20 percent.

Speaking to CNBC-TV18, Shantilal Jain, MD & CEO, of Indian Bank said, “Our asset quality is getting better and better so gross and net NPA both have come down.”

“The last quarter the slippage was around Rs 2,300 crore whereas the recovery was around Rs 3,200 crore and as a result, our gross and net NPAs come down. Going forward we are seeing that our SMA I and II have come down significantly, and the collection efficiency is maintained at 95 percent. So, going forward, we see that our asset quality should improve from here also,” he added.

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Moreover, the management is not seeing any major stress from corporate accounts. He said, “On the corporate side, the slippage was around Rs 200 crore in the last quarter that was only one account. Otherwise, we are not seeing any stress in a corporate book, maybe Rs 10-20 crore, but not beyond that on the corporate side.”

He added, “Going forward, the asset stress may be from the MSME book or so, but it will not be much. So, going forward we are seeing better asset quality.”

On loan growth, Jain said, “Our loan growth was 14 percent on a year-on-year basis and basically in the RAM we are growing 13 percent. Quarter-on-quarter consistently bank is posting double-digit growth in retail, agriculture and MSME (RAM) sector.”

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(Edited by : Sudarsanan Mani)