Canara Bank plans infrastructure to enable recovery of bad loans
By Our Banking Bureau | 09 Dec 2002
“We 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.“
The bank will explore all options to reduce bad debts even if it needs to attach properties and physical assets, he adds. “The bank's 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.“
Agricultural 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.