BIZ-TL-SYNDICATE BANK
- Country:
- India
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
managing director of the bank Mrutyunjay Mahapatra said here
Saturday.
The bank is adopting a combination of methods to
recover bad loans, he told reporters here.
It has formed a team of 1,500 people meant for taking
up the recovery process, in addition to special branches which
took up the task. The branches report directly to the
corporate office.
''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.)
ALSO READ
Cooperating in investigation: Congress' Amba Prasad after being questioned by ED
Ancelotti reaches milestone with 200th Champions League coaching appearance
Arvind Kejriwal challenges Delhi HC ruling on money laundering case in Supreme Court
Delhi CM Arvind Kejriwal moves SC against HC order upholding his arrest in money laundering case stemming from excise 'scam'.
UP: Fire breaks out at restaurant in Aligarh, one injured