Several state-run banks have announced improvement in the recovery of bad loans as they took steps like setting up specialised asset management recovery branches (ARMBs) for this purpose.
For example, Corporation Bank could reduce non performing asset (NPA) through cash recovery and upgradation to the extent of Rs 1,509.30 crore in the fiscal ending March 2013, as against Rs 758.60 crore in the previous fiscal, a jump of 99 per cent.
Union Bank of India said it was able to reduce gross non-performing assets from 3.01 per cent of gross advances as on March 31, 2012 to 2.98 per cent as on March 31, 2013.
Indian Overseas Bank announced cash recovery and upgradation of Rs 1,755 crore in NPA accounts during 2012-13/ The bank attributed largely to the its crackdown on bad loans through a specialised ARMBs to improve the recovery of NPA accounts.
Also, Bank of Baroda could recover Rs 625.57 crore in the fiscal ending March 2013 through strict action in this regard.
The bank also recovered Rs 352 crore from the prudentially written-off accounts, enabling Bank of Baroda to restrict its gross NPAs to 2.4 per cent and net NPAs to 1.28 per cent during 2012-13 — the lowest level in the large-sized PSU bank segment.