It is necessary to reform the legal system in the country to curb the activities of wilful defaulters of bank loans, as at present there are too many hassles in the loan recovery process, according to Vijaya Bank Managing Director and Chief Operating Officer Kishore Sansi.

He was speaking here on Wednesday after inaugurating a bank branch at Lawson’s Bay Colony.

He said, “Our legal system is old and somewhat complicated. I opine that legal reforms are urgently needed to control the wilful defaulters. The debt recovery tribunals are doing a fine job, but they are handicapped by a number of constraints,” he said.

Steel industry woes On the banking scenario in the country, he said the sector was passing through a difficult phase due to the turbulence in the global economy and “therefore, the domestic economy is also affected and the credit requirement is muted.” Certain sectors like steel and textiles were badly affected, especially steel due to the glut in the Chinese market. He said the government would have to provide some concessional packages for the revival of these sectors.

He said consolidation in the banking sector in India through mergers and acquisitions may take place but “there are pros and cons which we have to consider carefully.”

On Vijaya Bank, he said the bank was performing very well and “by the end of 2016, we are setting ourselves the target of ₹2,50,000 crore in business volume from the present level of ₹2, 15,000 crore and the number of branches will go up to 2,000 from 1,865. We are aiming at an operating profit of ₹2,000 crore by that time.”

He said the net NPA of the bank amounted to 2.9 per cent and the gross 4.45 per cent of the advances.

On the capital adequacy front, the bank is in a comfortable position, he added.

P Srinivasa Reddy, Regional Manager, said 10 branches would be opened in the region in addition to the existing 47.

sarma.rs@thehindu.co.in

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