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Recovery rate of commercial banks falls to 46%

Lukewam collection from govt sponsored schemes main culprit

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Jayajit Dash Bhubaneswar
Last Updated : Feb 21 2014 | 11:19 PM IST
The recovery rate of commercial banks in Odisha has plunged to 45.72 per cent by the end of December 2013 mainly due to lukewarm collection from government sponsored schemes. The recovery rate has sharply decelerated from 61.82 per cent (as on March 31, 2013) to 45.72 per cent by December 2013.

Data compiled by the State Level Bankers’ Committee (SLBC) reveals the recovery position under Swarna Jayanti Swarozgar Yojana (SGSY) is 24.64 per cent. The recovery rate under Pradhan Mantri Rozgar Yojana (PMRY) is still lower at 20.58 per cent.

The overall recovery position for public sector lenders is the worst at 40.45 per cent. Regional rural banks (RRBs) have fared better with 63 per cent recovery on their advances. Taking into account sector wise collections, recovery at 41.51 per cent is minimal for agriculture term loans including allied sectors.

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Out of the total demand for recovery at Rs 15,876.14 crore (as on December 31, 2013), the commercial banks have managed to collect only Rs 7,259.34 crore. State Bank of India (SBI), the biggest public sector lender is also at the top in terms of overdue. SBI has recovered only Rs 535 crore of the total demand of Rs 1,642 crore, meaning a recovery rate of 32.58 per cent.

Noting that the recovery of all banks in Odisha is very poor, the SLBC has suggested that banks and government departments need to make joint endeavour with specific strategies to improve the performance for better recycling of funds. The SLBC has also sought active involvement of the concerned line departments at the recovery camps to expedite collection of dues.

As many as 18288 cases involving Rs 142.84 crore under the Odisha Public Debt Recovery Act (OPDR) are pending for disposal by the certificate courts. SLBC has requested the government authorities to ensure quick disposal of all pending cases.

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First Published: Feb 21 2014 | 8:30 PM IST

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