The Hindu Business Line

‘Syn­di­cate Bank ex­pects ₹4,000-cr NPA re­cov­ery’

- Business · Finance · Maryland · National Company Law Tribunal · Nirmala Sitaraman · Syndicate Bank

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.

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