M D Mallya, CMD, Bank of Baroda told NDTV Profit that the management expects slippages of 1.3 to 1.4 per cent for FY'12 and sees conservative lending and strict monitoring of loans. Further, he said that the bank's loan book is relatively cleaner than other PSU banks, although with an 8.5 per cent exposure to power sector. However, he added that while the asset quality is stable so far, banks could see challenging times ahead.