Agency reports indicate that Allahabad Bank intends to bring down its gross non-performing assets (NPAs) to around 3.2 per cent by March 2014 from 3.92 per cent in 2012-13.
Shubhalakshmi Panse, Chairman and Managing Director of the bank is quoted as saying that the bank was monitoring bad accounts on a daily basis along with focus on recovery.
In 2013-14, the bank aims to recover Rs 2,800-3,000 crore from Rs 2,300 crore done last fiscal. The possibility of upgrade of accounts would be more with economic growth.
Owing to rise in bad loans, the bank reported a 68.5 per cent decline in net profit at Rs 126.15 crore for Jan-Mar 2013.
The bank is said to be making progress in mopping up low cost deposit (Casa) and it hopes to sustain it in the current financial year.
By end of the past fiscal, the bank had a Casa (current account, savings account) ratio of around 31 per cent. The bank reportedly does not have room for reduction in lending rates as it had already done so in February and its current lending rates are competitive.
The bank, which witnessed decent growth in corporate loan book, wants to increase its retail assets. It aims to increase retail loan book to 15 per cent from present 13.5 per cent.
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