Canara Bank reduced retail gross NPA using CIBIL information, says Dubey

NPA down to 3% from 6.6% due to scrutiny of loan applications

Canara Bank's gross non performing asset (NPA) in retail has come down to 3% from 6.6%, thanks to the scrutiny of loan applications using credit information from credit information agency. At present the retail portfolio growing at 45% for the bank.

 

Inaugurating the Fourth Annual Credit Information Conference in Chennai, organised by Credit Information Bureau (India) Ltd (CIBIL) and TransUnion Software Services, R K Dubey, chairman and managing director of Canara Bank said, "The way our credit on retail is working, we are hopeful that the gross NPA rate to be below three percent".

 

He said that all the 4500 branches of Canara Bank are using the data of CIBIL while taking a decision on the loan applications and this has helped the Bank to avoid lending to customers with higher risk.

 

However, the Bank's NPA in micro, small and medium scale is high at five to six% and similar to the database of 300 million in consumer bureau, the CIBIL should increase its database for the commercial bureau too. The credit information bureau currently has a 15 million data in its commercial bureau.

 

The data in CIBIL's consumer bureau has also helped the bank to identify the scoring of promoters of corporate entities, which helped them to take a decision on corporate lending.

 

He also said that the Bank would like to fully implement the risk based pricing in its lending in future. It has already implemented risk based pricing, but only in a few products.

 

The gross NPA of the Bank stood at 2.64% for the quarter ended September 30, 2013, as against 2.58% during the same period of previous fiscal year.