The Hindu Business Line : No setback to reforms process: M.B.N. Rao

THE reforms in the banking, or financial, sector are likely to proceed as usual in spite of the change of Government at the Centre and the banking circles do not have any reservations over the policies of the Congress or the Left parties on this score, Mr M. B. N.Rao, the Chairman and Managing Director of the Indian Bank, has said.

He was addressing a press meet here on Friday. He said the Congress government had appointed the Narasimhan committee and the reforms were being carried out more or less smoothly, as suggested by the committee by the successive governments.

"I do not envisage any significant shift in policy. These reforms have been dictated by market realities which still are the same regardless of the change of the Government," he explained.

He said his bank had performed exceedingly well in recent times and its net profit had gone up to Rs 405.75 crore on a business turnover of Rs 45,379 crore. The bank had a large customer base of 163 lakhs and the net NPA had been brought down to 2.71 per cent.

He said the bank had recovered NPA worth Rs 320 crore and the current NPA in money terms amounted to Rs 374 crores. "It is our target to wipe out all NPAs by 2007," he said.

He said the bank was focussing on retail banking, especially the housing loan segment, and was offering loans at the lowest rates possible.