‘MCLR-linked loans to account for 54% of our book by year-end’

Indian Overseas Bank has reported a 1,000-crore-plus profit for the third consecutive quarter.MD and CEO

- @ AJAY KUMAR SRIVASTAVA, MD & CEO, INDIAN OVERSEAS BANK

Ajay Kumar Srivastava tells Narayanan V about the key drivers behind this growth, the bank’s shift towards high-margin loans, and its preparedness to meet the expected credit loss (ECL) framework. Excerpts:

Deposit growth lagged at 9% even as advances rose 21% in Q2.

Deposit growth should ideally be in line with credit growth, but that is not happening for the last six-seven quarters. Credit growth is essential — without it, there’s no income or profitability. To bridge the gap between credit and deposit growth, we are borrowing from the market. We also get refinancing from Sidbi and Nabard at affordable rates. Through these measures, we are meeting our credit requirements and maintaining our credit-to-deposit ratio in the 80-85% range.

What is your strategy to increase deposits?