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    Syndicate Bank hopes to reduce net NPA to below 5%

    Synopsis

    The net NPA of the bank is currently at 5.95 per cent while the gross NPA is at 11.45 per cent.

    Among the NPAs , the bank has an exposure of around Rs 2000 crore to IL&FS, Rs 1500 crore to DHFL and around Rs 600 crore to Religare, he said.

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    Kochi: Syndicate Bank expects the Supreme Court judgment on Essar Steel insolvency case to provide a fillip in dealing with its non-peforming assets (NPA).

    The bank MD and CEO Mrutunjay Mahapatra said the court verdict that the decision of committee of creditors is final in terms of distribution of funds to creditors will help it to reduce the NPAs in insolvency and bankruptcy code (IBC) cases.

    ``We have around Rs 2500 crore in IBC related cases and if it comes down, then we can take the net NPA level to 5 per cent or below it,’’ he told mediapersons in Kochi on Friday after inaugurating the bank’s zonal office in Kerala at Kochi.

    The net NPA of the bank is currently at 5.95 per cent while the gross NPA is at 11.45 per cent. `` Our provisioning is at 69 per cent which we are planning to increase,’’ he said. Among the NPAs , the bank has an exposure of around Rs 2000 crore to IL&FS, Rs 1500 crore to DHFL and around Rs 600 crore to Religare, he said.

    Mahapatra said the recovery of NPAs of the bank has improved from Rs 18 crore per day in the first quarter of FY20 to Rs 26 crore per day now . `` We hope to do much better in the last two quarters of the fiscal year,’’ he said. According to him good and extended monsoon will help in boosting the credit offtake in the coming months.

    Talking about the amalgamation with Canara Bank, he said it will be business as usual till the date is announced and that there will be no reduction of the employees or branches following it. `` There may not be any VRS scheme as well as the bank does not have flab like the telecom .’’ The bank will also keep its expansion plans in abeyance as it will be a joint strategy after the amalgamation.
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