A recent press report said that Corporation Bank has not seen any rise in delinquency, despite the rising interest rate regime.
Reports said that on of the bank official has said that the bank has not seen any rise in defaults in the recent time, in spite of the rate hikes by the central bank. The official said the bank has formed monitoring cells in various regions to inspect weak segments of its loan portfolio.
The bank has reported a gross non-performing asset of 1.07 per cent, which is comparatively lesser than in the corresponding period last year. The bank’s NPA marginally increased to 0.52 per cent during the April-June period from 0.43 per cent year ago.
About various segments of the loan portfolio, the official said big ticket loan books in the infrastructure sector would not be impacted, as it hopes that the rise in installments would be absorbed by the companies. However, mid-corporate loans, along with retail advances, may see some repayment pressure, the official admitted.
Reports said that about 10 per cent of the bank’s loan book includes infra funding, mainly into power and road projects. The bank’s total loan book stands at Rs 79,000 crore as of the June quarter and is looking at a growth rate of above 20 per cent in the recent time.