The Hindu Business Line : BoM keen to trim NPAs to 1%

Increasing fee based revenue, growth of 25 per cent, cash recovery of Rs 200 crore from NPAs are some of the plans that the Bank of Maharashtra has chalked out for itself for the current fiscal.

Talking to presspersons, Mr M.D. Mallya, Chairman, Bank of Maharashtra, said the bank has a gross NPA (non-performing assets) of Rs 944 crore and targetted to recover about Rs 200 crore for the current financial year. It has already recovered Rs 105 crore so far, he said.

The bank was targeting an NPA ratio of less than one per cent by March 2007. He said the bank was taking a dual strategy of which one was the cash recovery and the second, credit monitoring.

Mr Mallya said the bank, which has started distribution of insurance products of Life Insurance Corporation of India and United India Insurance, would now begin the distribution of mutual funds products also.

Growth outlook

Mr Mallya said the bank which has recorded a total revenue of Rs 44,000 crore for the fiscal ended March 2006 is estimating a total revenue of Rs 55,000 for the current fiscal. For the first quarter of the current fiscal, it posteda net profit of Rs 60.96 crore as against Rs 45.10 crore for the corresponding period last year.Operating profit had increased to Rs 154.88 crore ( Rs 73.71 crore).Thee bank would expand the ATM network to 230 by December.

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