Karnataka Bank Ltd shareholders have discussed at length issues related to the NPA management at the 87th annual general meeting here.

Replying to the queries of shareholders on the subject, Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said that the bank is attacking the NPA and taking all steps to control it.

The bank wants to recover around Rs 200 crore of NPAs during the current financial year, he said.

The gross NPA of the bank was 3.97 per cent (3.73 per cent) and net NPA was 1.63 per cent (1.37 per cent) on March 31, 2011.

Tracing the NPA movement since the 2008 global slowdown, Mr Ananthakrishna, Chairman of the bank, said that the slowdown, which began in September 2008, did not impact the bank much in 2008-09.

The impact of slowdown on coffee, diamond and textile sectors, and the bank's exposure to these sectors, affected the bank during 2009-10 and 2010-11.

Stating that NPA management is the main concern of the bank, Mr Ananthakrishna said strategies are being worked out by the Managing Director and his team in this regard.

Plans ‘adalats'

Mr Bhat said that the bank is planning to conduct adalats at various places to tackle NPAs. A general manager has been appointed to tackle NPAs.

The bank is aggressive to take possession of the securities under the SARFAESI Act.

“This year, we have targeted a recovery of not less than Rs 200 crore under NPAs.

“If we succeed in that we will see that our gross NPA will substantially come down,” he said.

When some shareholders wanted to know the reason for granting 30 per cent dividend during 2010-11 as against 40 per cent the previous fiscal, Mr Bhat said the bank allotted its rights share to shareholders on the last day of the financial year 2010-11.

Those shares are also eligible for dividend payment for the full year.

“If you work out that, it comes to 42 per cent,” Mr Bhat added.

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