Mukherjee said these units are facing difficulty following the implementation of Goods & Services Tax.
In the September quarter, the lender reported Rs 237 crore fresh slippage with a majority of it coming from small accounts while gross non-performing assets ratio slipped to 12.31% from 10.73% sequentially.
“There is stress but recovery is also happening,” Mukherjee told ET.
The bank has recovered Rs 370 crore so far and is looking to recover another Rs 500-700 crore in the next two quarters.
The private sector lender reported its fourth consecutive quarterly loss at Rs 132 crore on account of deterioration of asset quality and slower business growth.
Net profit was a mere Rs 10.5 crore in the year ago period.
Its advances grew a mere 3.8% as it does not have capital to grow while it has curtailed exposure to NBFCs, real estate and infrastructure to Rs 5000 crore from Rs 6,800 crore earlier.
“We are looking to raise about Rs 2,000 crore by the year-end,” he said.
It has shortlisted five investors including the Blackstone Group, Bain Capital and TPG Capital Management for fund raising.
The bank’s capital adequacy ratio fell to 9.67%, a share above the regulatory bare minimum of 9% at the end of September from 10.57% a year ago.