It is the right time for banks to expand their credit portfolio with caution, according to Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer, Karnataka Bank Ltd.
Speaking at the third quarter regional heads' review conference in Mangalore on Wednesday, he said food inflation has moderated and Reserve Bank of India has taken steps to ease the liquidity with a CRR cut. As a result, interest rates are unlikely to increase, he said.
Stressing the need to expand the credit portfolio with caution in such a situation, Mr Bhat asked the regional heads to improve credit with focus on agriculture, the MSME and other retail sectors.
Stating that NPAs (non-performing assets) are on the increase in the industry, he said close monitoring of advances is required to maintain the quality and contain slippages.
He advised the regional heads to focus on top-line growth with an eye on commensurate bottom-line growth.
The General Manager, Mr P. Jairama Hande, briefed them about the highlights of the recent RBI monetary policy and its impact on banking sector, besides explaining the highlights of the performance of bank for the third quarter of the current fiscal.
The General Managers, Mr N. Upendra Prabhu, Mr M.V.C.S. Karanth and Mr M.S. Mahabaleshwara, spoke on the occasion.