VR Iyer, Chairperson & Managing Director, Bank of India
was the Executive Director of Central Bank of India from September 01, 2010 till she joined Bank of India. Ms. Iyer, post-graduate in Commerce with CAIIB, started her career in Union Bank of India in 1975. Ms. Iyer, in her career span of more than three decades, had good stint in branch banking having worked in very large and extra large branches. She has extensive exposure in credit department, credit monitoring department and contributed significantly in setting up of risk management department, rolling out CBS, alternate channels and various other e-initiatives. Ms. Iyer served as Deputy General Manager (Information Technology) during 2006-07 before getting elevated as General Manager in January 2008 and was holding the portfolios of Information Technology and Risk Management.
Bank of India
was founded on 7 September, 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership and control till July 1969 when it was nationalised along with 13 other banks. Today, the Bank has over 4,835 branches and 6,169 ATMs in India spread over all states / union territories. Bank of India is the first PSU bank to launch instant-money-transfer on all ATMs nationwide.
Dolly Mirchandani of IIFL
gives you the highlights of a media interaction where Ms. VR Iyer, says, “The fourth quarter of the current fiscal is expected to be challenging. The bank's loan growth would be around 10% largely driven by global growth.”
Brief us about your financial results?
Our net profit stood at Rs.173 crore, while the operating profit was Rs.1,865 crore for Q3 FY15. The bank's net interest income — interest earned over interest expended — improved to Rs.2,780 crore, whereas our non-interest income was Rs.1,080 crore in Q3 FY15. The decline in operating profit was due to muted credit demand on the lower side. The bank's growth otherwise has been in tune with the industry.
Please provide some details about non-performing assets.
The bank's gross NPA ratio stood at 4.07% in December 2014 against 2.81% in December 2013. The net NPA ratio stood at 2.5% in December 2014 compared to 1.75% in December 2013. Asset quality is the major area of focus for the entire banking industry. Gradual improvement and broad base recovery is required which would help to reduce some stress on NPAs in the second half of 2016.
What was your cash recovery & upgradation?
The bank's total cash recovery stood at Rs. 481 crore, while upgradation was Rs. 206 crore in the December 2014 quarter. The bank's slippages was Rs. 246 crore which is the lowest in the third quarter of the current fiscal.
What is the bank's Capital Adequacy Ratio (CAR) as per Basel-III norms?
The CAR of the bank under Basel-III is 10.68% as on December 31, 2014. The Tier-I CRAR (capital to risk (weighted) assets ratio) was 7.77% as on December 31, 2014, whereas the Tier-II CRAR is 2.91% as on December 31, 2014.
How much was your CASA (current and savings account) deposits in Q3 FY15?
The CASA deposits increased 9.03% to Rs. 1.11 trillion in Q3 FY15 from Rs. 1.01 trillion in the third quarter ended 2013. Our focus remains on CASA in the current quarter as well as in the subsequent quarters.
What are your future plans?
We have received merchant banking licence from the government of India and started our operations almost 10 days back. The fourth quarter of the current fiscal is expected to be challenging. The bank's loan growth would be around 10% largely driven by global growth. The CASA is expected to be at 12%, while fee growth is expected to be at 5% YoY. We are planning to add 50 new branches and over 100 ATMs. We also target to bring our gross NPAs below 4%.