IOB focuses on bad loan recovery

Indian Overseas Bank will step up its thrust on making recoveries from bad loans in FY2014, said a top official. The public sector bank has set a target to recover Rs 2,500 crore from bad loans in FY2014, against Rs 1,700 crore recovered in FY2013, according to Chairman and Managing Director M. Narendra. “We have vested our branch managers with power to enter into one-time settlement with borrowers, whose loan outstanding is up to Rs 5 lakh. Further, we are organising camps (loan recovery) and resorting to Lok Adalats to make recoveries,” said Narendra. In the case of bad loans with an outstanding of Rs 1 crore or more, each general manager at the head-office has been assigned the responsibility of recovery in three to four regions. The bank’s bad loans increased Rs 2,688 crore in FY2013 to Rs 6,608 crore as at March-end 2013.

Source: thehindubusinessline