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Corporation Bank is focussing on recovery, prevention of delinquencies and healthy credit growth for better management of non-performing assets (NPAs), according to Jai Kumar Garg, Managing Director and Chief Executive Officer of the bank.
Replying to shareholders’ queries at the 19{+t}{+h} annual general meeting of the bank here on Wednesday, he said additional verticals have been set up on the recovery front; in 2015-16, gross NPAs of the bank stood 9.98 per cent and net NPAs at 6.53 per cent.
The bank is taking care to ensure that fresh delinquencies do not happen, and monitoring is done in this regard.
Garg said the bank is focussing on lending to priority sector, retail segment, micro, small and medium enterprises (MSMEs), and better-rated corporate accounts to achieve healthy credit growth.
He said NPAs are less in the priority and retail segments. In fact, priority sector accounts for less than 5 per cent of NPAs compared to the overall NPA level of 9.98 per cent. Sectors such as infrastructure, steel and power account for maximum growth in NPAs.
Garg said that while the bank’s bulk deposits have come down to 45.52 per cent in March 2016 from 51 per cent in March 2015, there has been growth in retail term deposits.
He hoped growth-supportive government policies, good monsoon, and implementation of the Seventh Pay Commission recommendations will lead to better economic prospects during 2016-17.
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