Ashok Haldia, Managing Director and Chief Executive Officer at PTC India Financial Services , told CNBC-TV18 on Tuesday that 80 percent of sanctions worth Rs 3,000 crore in the third quarter had been in the renewables sector. In Q3 results released on Monday, the company said its net profit had risen 19.8 percent year-on-year to Rs 83.2 crore. Haldia said that the company’s loan book has been growing at about 25 percent, adding that he does not have any concerns about loan growth. He said the company had been carrying stressed assets worth Rs 1,000 crore, but maintained that there had been no deterioration in asset quality.
Below is the verbatim transcript of Ashok Haldia’s interview to Reema Tendulkar & Nigel D’Souza on CNBC-TV18
Reema: Let me start with the asset quality, we got a lot of comfort in your quarter two numbers when the gross non-performing assets (NPA) ratios improved by 150 basis points. This time there has been a reversal, your gross NPA ratio has actually deteriorated. Do you expect a further spike in your gross NPAs going ahead? What happened to the asset quality this time around which led to the weakness?
A: All along on the asset quality we have been maintaining the assets which have some kind of stress are around Rs 1,000 crore. That amount still stands and within that amount there could be assets which would be flipping from stress to NPA or maybe from NPA back to the stress. This quarter there is an asset and only wind form that we have financed in the state of Maharashtra as a debt for which the PPA was not signed for last 12-13 months there were still servicing our debt. Now that PPA is expected to be signed in next couple of weeks and this loan would be again back to standard asset. The loan amount was about Rs 58 crore so what I am trying to say is that our overall stress in the assets is about Rs 1,000 crore. Now within that Rs 1,000 crore the amount could be flipped into NPA or flip back into a stress assets. So, I don’t see any in terms of deterioration into the quality of the assets that we hold.
Nigel: Are you trying to tell us that the asset quality will not deteriorate from these levels?
A: Yes, the quantum that I have stated.