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Allahabad Bank eyes Rs 5,500 crore recovery
State-run lender Allahabad Bank is looking at a recovery of around Rs 5,500 crore in the current fiscal, an official said on Wednesday.
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Kolkata
The bank submitted a roadmap to the Centre and if everything goes “well and smooth” as per its projections, it was likely to come out of prompt corrective action (PCA), imposed by the Reserve Bank of India (RBI), by March 2020, bank’s Executive Director NK Sahoo said.
“We are expecting Rs 3,000 crore recovery through resolution in NCLT (National Company Law Tribunal) in the entire financial year, another Rs 2,000 crore through normal recovery process and Rs 400-500 crore through asset sales,” he said. “We have recently recovered around Rs 1,300 crore from the resolution of Bhushan Steel and Electrosteel Steels accounts through NCLT,” he added.
The bank has an outstanding exposure of Rs 4,000 crore in several accounts referred to NCLT including Uttam Galva, Alok Industries, Essar Steel and among others, Sahoo said, adding that it was hopeful of recovering from these accounts in the current fiscal. The bank may have to take a hair-cut up to 50-60 per cent in these accounts, he added.
“We have created a NCLT cell to effectively monitor the NCLT accounts. We have almost 94 (stressed) accounts referred to NCLT by us as well as by other lenders amounting around Rs 12,000 crore.
“Almost 45 per cent of our gross NPA is in the NCLT,” Sahoo told shareholders here at the 16th Annual General Meeting of the Allahabad Bank.
UCO Bank looks at recovery of Rs 4,000 cr this fiscal
State-run lender UCO Bank, which is aspiring to be back in profit, is aiming at recovery of bad loans of around Rs. 4,000 crore during the current fiscal, its MD and CEO RK Takkar said on Wednesday. The Kolkata-headquartered lender is hopeful of making net profit and coming out of the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI) in the next two years, he said.
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