ICICI Bank to restructure some more loans in Q2, Q3
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Last Updated: Tuesday, August 04, 2009, 23:45
  
New Delhi: Country's largest private sector lender ICICI Bank on Tuesday said it will have to rehabilitate some more loans in the next few quarters.

"I must recognise the fact that going forward, in the next two quarters, we will still have some more loans to be restructured," ICICI Bank CEO and Managing Director Chanda Kochhar told private news channel in an interview.

During April-June quarter, the bank added new restructured loans to the extent of Rs 1,500 crore, she said.

But the bank also have the past restructured loans which actually got upgraded to the extent of Rs 3,500 crore, she said, adding "so in a way during, this quarter we actually saw reduction in the restructured loans net-net to the extent of Rs 2,000 crore."

The total restructured portfolio therefore is very small. As of now it is currently just about Rs 3,000 crore, she added.

Giving details of loan restructuring, Kochhar said, "this has come across various industries and these are actually most of them are larger cases, very few smaller cases because we do not have in our portfolio many of the small cases so there are some medium enterprises."

A large part of them are large enterprises and industry wise there is no specific industry concentration, she said, adding, these are spread across various industries.

"But broadly I am very confident that these cases that we are restructuring are indeed those cases that have some interim problems. Over a period I only expect them to come up and start becoming performing assets," Kocchar said.

On capital raising plan, she said, the bank don't need to raise equity capital at all because the capital adequacy is almost 17.5 per cent.

Of the total, the tier I capital adequacy is more than 13 per cent. Therefore, the bank is very adequately capitalised, she added.

Speaking about credit expansion, she said, "I actually believe that credit growth will be pretty strong in the second half of this year. I think the demand on the mortgages will come back sooner than what we are expecting and gradually then the demand on the project and infrastructure loans will also come back."

ICICI Bank will also grow portfolios of mortgages, car loans, infrastructure projects, the other project loans and the corporate finance, she added.

Bureau Report


First Published: Tuesday, August 04, 2009, 23:45


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