The Hindu Business Line
‘Syndicate Bank expects ₹4,000-cr NPA recovery’
State-owned Syndicate Bank expects to recover ₹4,000 crore of bad loans during the current fiscal. The recovery is likely from the cases before the National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code (IBC) and resolution of cases at the bank level, including onetime settlement, said Syndicate Bank Managing Director Mrutyunjay Mahapatra.
The bank has recovered ₹800 crore in the first quarter, and the target for the current fiscal is ₹4,000 crore, he said.
Besides, the bank is likely to get funds from the government during the financial year to boost credit growth.
“We have requested the government for infusion. The government will decide as to how (the funds ought) to be given (to) the bank,” said Mahapatra.
Finance Minister Nirmala Sitharaman has proposed in the Union Budget for 2019-20 Mrutyunjay Mahapatra, MD, Syndicate Bank
an allocation of ₹70,000 crore for public sector banks (PSBs) to improve credit flow in the economy.
During the first quarter ended June 30, Syndicate Bank reported narrowing of its net loss to ₹980.46 crore due to fall in provisioning for bad assets.
The bank had posted a net loss of ₹1,281.77 crore in the same quarter of the previous fiscal. Total income during the June quarter rose to ₹6,080.69 crore, from ₹5,637.51 crore in the year-ago period.