Business Daily from THE HINDU group of publications
Thursday, Aug 10, 2006
Business Daily from THE HINDU group of publications Thursday, Aug 10, 2006 |
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Money & Banking
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Outlook Indian Bank upbeat on 2 big ticket NPAs M. Ramesh
Both Media Communications and MVR Industries owe well in excess of Rs 100 crore to the bank.
Chennai , Aug 9 Indian Bank will enter both life and non-life insurance businesses after its capital restructure is completed, the bank's Chairman and Managing Director, Dr K.C. Chakrabarty, told Business Line. "We are examining the issue. The bank will at least take a stake in an insurance company," he said when asked about the bank's long-term plans. Indian Bank, whose accumulated losses of Rs 3,820 crore have been written off against its capital of Rs 4,593 crore, has requested the Government of India for permission to further write down its capital, either by converting a part of it into preference shares or by returning a part of the capital to the government. A decision from the government is expected shortly. The bank has said that it would come out with its initial public offering after the capital restructure. Dr Chakrabarty said that he was confident of closing at least two big-ticket delinquent accounts this year — Media Communications and MVR Industries — both of which owe well in excess of Rs 100 crore to the bank. Media Communications' property in the heart of Chennai — security for the loan — was scheduled for auction on July 19, but the company had obtained a stay from the Madras High Court. One of the conditions of the stay was that the company should deposit Rs 30 crore with the Court. An official in the bank told Business Line on Wednesday that Media Communications had not deposited any money and its deadline had run out. The Recovery Officer of the Debts Recovery Tribunal, Chennai, has to take a decision on when to auction the property, the official said.
More Stories on : Outlook | Public Sector Banks | General Insurance | Non-Performing Assets
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