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Karnataka Bank has said that the recovery in technically written-off accounts in the bank has been very encouraging for the last three years.
Replying to a question of a shareholder at the 98th annual general meeting of the bank on Friday, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said the track record in the recovery of the technically written-off account is very encouraging for the last three years.
The recovery team of the bank has already surpassed the target set for June. “Not only that, they have recovered the target for September also,” he said.
Regarding the recoveries under IBC (Insolvency and Bankruptcy Code) proceedings, he said resolutions are picking up under this, too. Stating that one account was resolved under the IBC in the last fiscal, he said: “We are expecting some more accounts to get resolved. So, we are optimistic about this particular channel.”
Mentioning that the bank has set up a special cell for monitoring the restructured accounts, he said the restructured portfolio has been coming down over the quarter. As a result of this, the provision for such accounts is also getting released. “I am confident that going forward it will further come down,” he said.
When a shareholder made a reference about frauds in the bank, he said the bank has been able to recover around ₹87.51 crore in 123 of around 170 accounts.
The bank is taking all the precautionary measures to prevent frauds, and in the meantime, recovery is also forthcoming. All-out effort is being made to recover the amount wherever the opportunity is there, he said, adding, every rupee earned there also adds to the bottom line of the bank.
When that shareholder wanted to know the use of technology to track frauds, Mahabaleshwara said the bank is in the process of establishing an Analytical Center of Excellence (AcoE), where will make use of Artificial Intelligence (AI) and Machine Learning (ML).
“We will be in a position to track the health of the advances with help of various early-warning signals,” he said.
Stating that the bank has put in place a lot of entry-level checks, he said at the onboarding itself, a lot of preventive measures have been initiated to prevent future frauds and also to minimise the risk.
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