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Syndicate Bank has strengthened the monitoring of non-performance assets (NPAs) by setting up a Stressed Tiny Asset Recovery Team (START).
“We have begun to effectively outsource the work relating to recovery by hiring agents. Have also begun to sell some stressed assets to asset reconstruction companies and gone in for immediate recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 as well,” said Sudhir Kumar Jain, Chairman and Managing Director, Syndicate Bank.
The bank is also focused on tackling soft NPAs, initiated special one-time settlement schemes and created a dedicated special monitoring department (SMA) at the corporate office. Without disclosing the amount that the bank has recovered, Jain said: “The bank conducted four country-wide Bruhat Synd Adalats during 2013-14 and were successful in recovery.”
The main reason for higher slippage is the ban on mining activity in Karnataka. Borrowers involved in retail, transport and mining segments have been the worst affected.
Since the third quarter of this financial year (2013-14), the bank has taken various steps to recover bad loans and arrest the deterioration in asset quality, he said. The slippages have begun to slow down from the third quarter.
“In Q3, the slippage stood at ₹691 crore compared to Q1 and Q2 slippages of ₹1,303.84 crore and ₹1,740.59 crore, respectively,” said Jain.
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