Financial Daily from THE HINDU group of publications
Tuesday, Dec 03, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 03, 2002 |
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Non-Performing Assets Money & Banking - Non-Performing Assets Canara Bank to set own team after defaulters Sarbajeet K. Sen
NEW DELHI, Dec 2 AT a time when most banks and FIs groping in the dark and are considering hiring outside agencies to seize and manage units taken over under the new non-performing assets (NPA) recovery law, Canara Bank is likely to set pace of developing in-house expertise for the purpose. Even as the new law awaits Presidential assent after being passed, Canara Bank has set in motion the process of constituting a dedicated team selected from within its officials to seize assets of defaulters and manage them till their disposal to recover dues. While the core team for the purpose would be in the bank's headquarters at Bangalore, each of the bank's 13 circle offices and 32 regional offices would have a couple of dedicated personnel to handle recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Bill, which is soon to become an Act. "We plan to have our own dedicated infrastructure to take action against defaulters who refuse to pay up even after the expiry of the 60 days notice served on them. We have enough manpower to take care of a large portion of the work that would devolve on us after the final enactment of the legislation," the bank's Chairman and Managing Director, Mr R.V. Shastri, said. He said that Canara Bank had already identified 700 cases of defaulters who would be dealt under the process prescribed under the new legislation. The bank had already sent out notices for recovery to 450 of these defaulting borrowers. Mr Shastri said that all the staff members who would be assigned the new task of seizure and the management would provide proper training before they are let loose on the defaulters. However, he did not altogether rule out the need to supplement the in-house efforts by hiring some specialised outside agencies. "Some of the work might make us think of hiring some outside agencies," he said.
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