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Bank of India has embarked on a programme aimed at strengthening customer relationship, a top official of the bank said.
Participating in an SME and Agri Expo organised by Bank of India’s National Banking Group (South) at the Tamil Nadu Agricultural University, N Damodharan, Executive Director, Bank of India, said the bank has been conducting similar programmes across various districts to strengthen customer relationships and understand their requirements. As many as 46 beneficiaries (across segments) were given sanction letters for loans totalling ₹35 crore.
On the sidelines of the expo, he told reporters that the bank has, in the last two months, recovered ₹7,000 crore worth Standby Letters of Credit and the balance of ₹2,000-odd crore would be recovered in the next two months. (A standby letter of credit is a document issued by a bank, which serves as a guarantee — with the bank promising to pay the beneficiary.)
This recovery will substantially improve the bank’s balance sheet. The provision coverage is adequate at 65 per cent, he said, adding “our endeavour is to bring the net NPA from around 6.7 per cent at present to less than 6 per cent”.
On credit growth, Damodharan said that it has been reasonable, growing at 22 per cent the last three quarters.
The bank, he said, has not shied away from corporate advances and has brought in more guidelines to prevent frauds.
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