Life after initial public offering (IPO) has been good. We are fully capitalised because it has fueled our growth and improved our profitability a lot. We were heavily leveraged for 15 times, when we went for the IPO. For 30-36 months we wouldn't need to go to the market. In three years time, we will go for follow-on public offer (FPO). Presently, we have enough capital.
How many branches are you planning to open in FY18?
In FY18, we are going to open 23 branches in 14 new cities. It is a big task but we are sure that we are going to achieve it, in cities such as Jamshedpur, Bhubaneshwar, Ranchi.
The impact of demonetisation did happen for about 45-50 days after November 8 and now, it's done. After a quarter, everything became fine.The bounce rates came down the delinquency levels came down.
Do you agree that there is a slump in the real estate sector? When will things start looking up?
There has been a slump as far as new launches are concerned. But things will start looking up from November-December. Things will be good after 6-7 months, when Real Estate Regulation Authority (RERA) will be effective throughout the country after July 31. At present, number of developers are refrained to launch their new projects because it has to approve under RERA in a particular state, as each state has its own law. But sales of ongoing projects are going fine.
They are not selling any stake. Neither PNB nor Carlyle. Carlyle informed us that they are loving it and are not going to sell their stake. PNB or Carlyle are not selling stake on November 8 when the lock in period gets over.
The interest rate is at the bottom of the curve. It is not going down any further. For three years, the rate of interest has been coming down and has moved into single digits but has it increased credit growth or credit quality? No. It is the business environment and the sentiment that sells credit. But then if my cost goes down, I will pass it on to the customers.