Canara Bank plans infrastructure to enable recovery of
9 December 2002
Canara Bank will be setting up infrastructure to enable
recovery of bad loans following the passing of the Securitisation
are planning to create an infrastructure which will help
us recover bad loans. The option of outsourcing loan recovery
is also being explored, says Canara Bank chairman
and managing director R V Shastri. The bank has
already issued notices to over 700 accounts that have
not repaid loans, and has found a few accountholders who
have come for a onetime settlement of dues.
will explore all options to reduce bad debts even if it
needs to attach properties and physical assets, he adds.
The banks net non-performing asset [NPA] of
Rs 1,365-crore ratio dropped to 3.84 per cent from 3.89
per cent as on March 2002. During the current half year,
the bank would effect a cash recovery of Rs 222 crore
in NPA accounts as against Rs 172 crore during the corresponding
period last year.
recovery stood at 85 per cent, whereas from the manufacturing
sector it stood at 70 per cent. Canara Bank has around
160 cases of establishments which have gone to the Board
for Industrial and Financial Restructuring, with a total
outstanding of Rs 800 crore.
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