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The size of non performing assets has turned out to be a serious problem for the country’s banking sector, according to V.G. Mathew, Managing Director and CEO, South Indian Bank.
Earlier banks were lending towards working capital needs. However their transformation as project lenders has been instrumental in the worsening NPA situation, he said.
He was speaking at a felicitation function organised jointly by State Forum of Bankers’ Clubs (Kerala) and Bankers’ Club Greater Kochi here.
Declining credit solution process is a major challenge for banks, he pointed out. Merchant bankers are keen to expedite the process of lending. But there is a need to concentrate on the credit risk.
According to Mathew, banks were able to deal with the legacy NPA’s of 1995-96 by 2004-05. It may be possible to overcome the present crisis as well in the near future. The government and the RBI are taking steps towards this end, he said adding that the present situation is similar to that of 1995-96.
Corporation Bank Zonal Manager A.M.M.G. Nair, who has been promoted as the General Manager was also felicitated at the function. State Forum of Bankers’ Clubs President Abraham Thariyan presided.
Forum General Secretary K.U. Balakrishnan, Bankers’ Club Greater Kochi President Vasu, Punjab National Bank Dy. General Manager K. A. Ravishankar, SBI Chief General Manager (retd) P. Venugopal and Axis Bank Circle Head E. Govindankutty also spoke.
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