Indian Bank NPA to rise, no change in board post-merger
The coronavirus outbreak also poses new threats to theamalgamated entity to clock around 12 per cent loan growth atthe end of the next fiscal.
"The existing Indian Bank board will not change fromApril 1 post amalgamation and the headquarters will remain atChennai," Indian Bank MD & CEO Padmaja Chunduru said assertingthat amalgamation is on schedule amid coronavirus outbreak.
She said net NPA of Indian Bank was 3.4 per centwhile that of Allahabad Bank is 5.1 per cent. However, whatwill be the net NPA of the amalgamated entity needs to beworked out.
The merged entity is likely to tap capital markets forgrowth capital during the second half of 2020-21, she said.
The combined entity's capital to risk-weighted assetsratio (CRAR) will be around 13 per cent.
"We have done our projection that it should be wellenough to take care of the growth for at least the initialperiod. We have a plan to tap the markets for the second halfof the next fiscal. But both the quantum and the timing willdepend on the market conditions, she said.
The bank was projecting a 12 per cent loan growth inthe first year of the amalgamated entity.
"But, we may have to review it in wake of thecoronavirus threat," Chunduru said.
Global advances figure for the merged entity will bearound Rs 3.83 lakh crore. The lender's both corporate andretail loans would stand at around 50 per cent of combinedtotal loan book. BSMNN NN