Bad loans are M Narendra’s biggest headache. But the new chairman & managing director of Indian Overseas Bank (IOB) has a plan to whittle down the Rs 2,685 crore in non-performing assets. “We are confident NPAs can be managed better by leveraging information technology and with an effective team," he says.
The bank has set a target of recovering Rs 1,300 crore in the current fiscal, of which Rs 526.95 crore already been achieved. Narendra is confident this target can be achieved. “A huge chunk of recovery will happen in the current fiscal,” he says.
Few at the bank will argue with that. Narendra, 56, is seen as one of the most dynamic CMDs that the bank has seen in recent times. Colleagues describe him as a positive thinker and a quick decision-maker. “We are unable to run with him,” admits a senior IOB official.
His go-getting attitude was exemplified on his first day on the job. On November 1, the day he took charge, Narendra brought in business worth Rs 1 crore from the state government. Growing the bank is high on the list of priorities, and he wants to close the financial year with business of Rs 2.50 lakh crore, against Rs 2.06 crore last fiscal.
“Apart from traditional banking services, we will offer customers combo products, provide a thrust to retail, SMEs, channel transactions and mid corporates,” he says.
Seen as easy to get along with, Narendra recently sent out a mission statement to staff in which he stated that IOB’s balance sheet is a reflection of its 23,000 employees and that each one should contribute. “Energy, Energise and Execute” is his mantra for the team.
