Syndicate Bank hopes to
recover about Rs 1,500 crore from non-performing assets (NPAs)
over the next three to six months, chief executive officer and
The bank is adopting a combination of methods to
recover bad loans, he told reporters here.
up the recovery process, in addition to special branches which
took up the task. The branches report directly to the
''As on September, our gross NPA was 12.9 per cent and
net NPA roughly 6.8 per cent,'' he said.
The NPAs in agriculture sector were also rising due
to expectations of loan waivers, he said.
''We are expecting that we will be profitable, kind
of a breakeven basis by the end of March and start getting
profits in June, Mahapatra said.
Currently, the bank has a total business of roughly
around Rs 4.80 lakh crore, comprising deposits of about Rs
2.50 lakh crore and advances of around Rs 2.15 lakh crore.
The bank is following a multi-pronged strategy of
managing the capital by taking assets which are highly rated
by external credit rating agencies, reducing NPAs and focusing
on retail and MSMEs (micro, small and medium enterprises) to
turn the bank into profitability, Mahapatra said.
The bank had reported losses earlier.
The net interest margin (NIM) is hovering in the
range of 2.25-2.5 per cent.
The bank is proposing to raise Rs 500 crore to Rs
600 crore through an employee share purchase scheme, he said.
''We are doing a employee share purchase scheme in
which we are proposing to raise Rs 500 crore to Rs 600 crore.
This will be one of the largest employee share purchase
schemes which is given in a public sector bank. We believe
that our bank has strong value, he said.
He also felt that a direct transfer of benefits in
farm sector like 'Rythu Bandhu' scheme in Telangana is better
as the loan waivers affected repayments.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)