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Unformatted text preview: NPA Management [ Print Page ] F.1. Management of Non-Performing Assets has been one of the focus areas of the Bank with the objective being to achieve the global benchmarks. Towards this goal, the Bank has focused on * Identification and monitoring of Special Mention Accounts as per the RBI guidelines in order to check the slippages of standard assets to NPA category by making prompt review and taking quick corrective action. * Restructuring of impaired standard accounts as well as of viable non-performing assets, both under the CDR scheme evolved by RBI as well as under the Banks own scheme, for containing NPAs. * Upgradation of assets at the whole bank level. * High-value accounts and BIFR cases, especially in doubtful and loss categories through the 9 speed Rehabilitation and Recovery Branches F.2. The Bank has performed well during the year by bringing the gross NPA and net NPA ratios down from 9.34% and 4.5% respectively as on March 31, 2003 to 7.75% and 3.48% respectively as on the 31st March 2004. F.3. Cash recoveries of Rs.1,617 crore, upgradation of NPAs to standard assets of Rs.958 crore and write-off of bad debts worth Rs.3,974 crore were achieved as on March 31, 2004. The gross reduction till the end of March 2004 was Rs.6,549 crore, but the overall reduction was affected by fresh slippages of Rs.5,721 crore. F.4. Till March 31, 2004, 83 cases were referred for restructuring under the CDR Scheme, in which the Bank had an aggregate exposure of Rs.6,749 crore. Out of these cases, 51 cases with an exposure of Rs.4,895 crore were approved and 20 cases with an exposure of Rs.1,221 crore were under process. F.5. The Bank issued notices under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 to 12,553 defaulting borrowers, involving dues of Rs.5,114 crore and seized assets in respect of 381 cases. The Bank recovered an amount of Rs.130 crore and received offers for Rs.348 crore under one-time settlement of the dues. F.6. The Bank aggressively implemented the guidelines issued by RBI in respect of settlement of NPAs up to Rs.10 crore. Recoveries aggregating Rs.245 crore were effected in 45,905 accounts under the scheme, out of the total settlement of 63,232 cases, involving an amount of Rs.469 crore. F.7. The Bank could successfully sell 76 financial assets worth Rs.570.35 crore to Asset Reconstruction Company India Ltd. (ARCIL) till March 2004, thereby reducing NPAs by Rs.191.21 crore and recording reversal of Assets Under Collection Account (AUCA) to the tune of Rs....
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This note was uploaded on 03/21/2010 for the course KNOWLEDGE 5654 taught by Professor Mr.david during the Spring '10 term at IESE Business School.
- Spring '10