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Indian Overseas Bank (IOB) said it will focus on increasing the share of the low—cost deposit base along with recovery of bad assets to contain NPA in the current financial year.
“Our major focus will be on enhancing current account, savings account (CASA) base with higher recovery from bad assets to contain NPA (non—performing asset) in the current financial year,” Chairman and Managing Director of the Bank M Narendra told reporters here.
The public sector lender, which had witnessed 89 per cent drop in net profit in the fourth quarter to Rs 59 crore due to rise in bad assets, has set a target to recover around Rs 2,500 crore in the ongoing fiscal.
IOB’s gross NPA rose to 4.02 per cent by the end of March 2013 from 2.74 per cent in FY12. Net NPA increased to 2.50 per cent from 1.35 per cent reported a year ago.
Referring to recoveries from debt—ridden Kingfisher Airlines account, Narendra said the bank had retrieved around Rs 11 crore from this loan account from a total exposure of Rs 143 crore.
He said the restructuring pipeline was likely to be around Rs 1,400 crore in FY14.
On low—cost deposit base, Narendra said the bank would try to ramp up its CASA base in the current fiscal. “We reduced our bulk deposit base to 15 per cent in the last fiscal. This year, our focus will be on increasing CASA base.”
The bank’s low—cost deposit base, or CASA, stood at 26.51 per cent by the end of March 2013.
Referring to growth in FY14, the bank said it expects an expansion of 15—18 per cent in advances though this will depend on the overall interest rate environment.
Source: thehindubusinessline
“Our major focus will be on enhancing current account, savings account (CASA) base with higher recovery from bad assets to contain NPA (non—performing asset) in the current financial year,” Chairman and Managing Director of the Bank M Narendra told reporters here.
The public sector lender, which had witnessed 89 per cent drop in net profit in the fourth quarter to Rs 59 crore due to rise in bad assets, has set a target to recover around Rs 2,500 crore in the ongoing fiscal.
IOB’s gross NPA rose to 4.02 per cent by the end of March 2013 from 2.74 per cent in FY12. Net NPA increased to 2.50 per cent from 1.35 per cent reported a year ago.
Referring to recoveries from debt—ridden Kingfisher Airlines account, Narendra said the bank had retrieved around Rs 11 crore from this loan account from a total exposure of Rs 143 crore.
He said the restructuring pipeline was likely to be around Rs 1,400 crore in FY14.
On low—cost deposit base, Narendra said the bank would try to ramp up its CASA base in the current fiscal. “We reduced our bulk deposit base to 15 per cent in the last fiscal. This year, our focus will be on increasing CASA base.”
The bank’s low—cost deposit base, or CASA, stood at 26.51 per cent by the end of March 2013.
Referring to growth in FY14, the bank said it expects an expansion of 15—18 per cent in advances though this will depend on the overall interest rate environment.
Source: thehindubusinessline
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