Corporation Bank is planning a cash recovery of around Rs 600 crore of non-performing assets (NPAs) by the end of the current financial year. The gross NPA of the bank stood at Rs 913.76 crore at the end of December 2010.
Terming the measures initiated by the bank as ‘war against defaulters', Mr Ramnath Pradeep, Chairman and Managing Director, told Business Line that the bank has initiated steps such as issuing notices to the wilful defaulters and organising recovery camps.
“We want to recover maximum amount. We are targeting a cash recovery of Rs 600 crore by the end of the fiscal. Of this, Rs 328 crore has been recovered till the end of December,” he said.
The bank, which conducted 30 recovery camps in January, will organise 100 recovery camps in February. The Executive Director, Mr Ashwani Kumar, and the General Manager, Mr H.M.A. Khan, are attending these recovery camps, he said. Most of the accounts are settled in such camps.
Asked about the type of accounts being tackled in such camps, he said the bank is proceeding with the recovery drive irrespective of the size of the loan. “Whether small or big accounts, we are attacking them on a war footing,” he said.
WILFUL DEFAULTERS
On wilful defaulters, Mr Pradeep said: “The bank will not leave them. We will issue the notice. Thereafter the RBI will be informed about them. With this, these people will not have access to any bank loans.”
The bank has also published the photographs of such defaulters in newspapers. In some cases, the bank has already issued notices under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, he said.
NPA SALE
To a query on the sale of stressed assets, he said the bank has appointed consulting firm Deloitte for the sale of NPAs. Deloitte will help the bank identify accounts and present them to asset reconstruction companies for sale. However, these NPAs are not part of the gross amount mentioned earlier. The accounts slated for sale have already been written off. Around 100 accounts worth Rs 175 crore will be sold during this fiscal, he added.