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Non-performing assets have put many banks in a difficult situation, forcing their managements to mount massive efforts to recover dues. While most often they feel they are fighting a losing battle, heartening news does come their way at times.
Dhanlaxmi Bank, Kerala’s oldest private sector bank, received one such heartening news in the form of an expression of support from its officers’ association to tackle the NPA menace. The bank’s officers will spearhead a special and coordinated recovery drive across all the regions with the sole objective of turning around the bank in FY18.
This initiative is the result of positive interactions between the management and the association. “This is a welcome change that the management has chosen us in its efforts to take the bank forward,” S Manoj, General Secretary of Dhanlaxmi Bank Officers Organisation (DBOO), said.
The management, he said, has acknowledged the practical experience of all the senior members of DBOO and, in turn, the association has proactively taken this challenge of turning the bank around by effecting substantial recoveries before the end of the current fiscal.
The association pointed out that the gross NPAs of the bank touched ₹446 crore in the quarter ended December 2017 compared with ₹316 crore in March 2017. The net NPA rose to ₹256 crore from ₹166 crore.
Profit trend
The bank recorded continuous profits in the first two quarters in the current fiscal and a net loss of ₹7.79 crore in the third quarter. In line with national scene, with increasing mark to market (MTM) and NPA provisions, the tide changed for the negative in the third quarter.
According to Manoj, various teams have been formed across the country and officers are taking up additional responsibilities over and above their assigned duties to visit other branches with NPA levels, and would leave no stone unturned in bringing in more recoveries.
DBOO members plan to knock on the doors of all customers who have defaulted, making delayed payments, or are on the verge of defaulting.
They even plan to visit customers whose accounts have been technically written off, he added.
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