Kolkata-based Allahabad Bank has strengthened its asset monitoring system in order to reduce its non-performing assets (NPAs). In 2013-14, the bank had reported gross NPAs of ₹8,068 crore.
According to Rakesh Sethi, Chairman and Managing Director, Allahabad Bank, the system involves daily monitoring of NPAs and sending reports to either the Executive Directors or the Chairman. Reports have to be sent by all 49 zones of the bank.
This apart, the bank has set up a legal cell in the recovery department to follow up on various cases. A separate recovery cell has also been set up, which monitors assets that have turned bad and have been fully provided for. “We have set up a robust system to track and reduce NPAs,” Sethi said.
Senior officials said around ₹1,000 crore has been recovered in the first quarter of this fiscal. “Currently, we have not taken a call on the sale of bad loans to asset reconstruction companies (ARCs) and neither have we earmarked any such bad loans for sale,” the official added. Last fiscal around ₹1,000 crore of bad loans were sold to ARCs, sources said.
According to Sethi, the bank is looking to hire 1,100 people during the current fiscal (2014-15). While some 600 recruitments will be made at the officer level, the remaining will be for clerical posts.
ExpansionWhile there are no immediate plans to build up an overseas footprint, the bank is looking to set up a branch in Dhaka, Bangladesh. Clearance from the Bangladesh side is awaited, Sethi said.