 "Indian Overseas Bank")
The bank's gross NPA stood at Rs 30,049 crore, with gross NPA ratio of 17.4%. Net NPA stood at Rs 19,213 crore, with net NPA ratio at 11.9% as on March 31, 2016.
The bank said it has 16 specialised Asset Recovery Management Branches to improve recovery under NPA accounts.
High value slippages of Rs 5 crore and above were reviewed by the Board, top NPA accounts of Rs 1 crore and above were monitored from the corporate office on a regular basis and borrowers were personally met by the GM, top executives including the MD, the ED review all high value NPA accounts on a regular basis with field functionaries.
Special schemes empowering branch managers to accept one-time settlement in small value NPA accounts for all NPAs of less than Rs 10 lakh have been revalidated and valid up to June 2016. An amount of Rs 794 crore was recovered in small value NPA accounts with outstanding less than Rs 10 lakh. Out of this, recovery in accounts with outstanding less than Rs 1 lakh amounted to Rs 439 crore.
Special schemes empowering regional managers to restore NPA accounts of value above Rs 10 lakh and up to Rs 1 crore was launched. The recovery in accounts with outstanding of more than Rs 10 lakh and up to Rs 1 crore was Rs 301 crore. Through Lok Adalat Rs 54 crore was recovered in 6,503 cases.
During the fiscal, 1,133 DRT cases were filed amounting to Rs 5,140 crore (claim amount). 467 cases involving Rs 1,376 crore have been decided. The recovery made in DRT cases is Rs 65 crore. There are 666 pending cases, amounting to Rs 3,764 crore.
"As against the corporate target of Rs 2,750 crore for total cash recovery (including recovery from written off accounts and recovery of undebited interest), the achievement was Rs 2,191 crore," the bank said.
The upgradiation of NPAs alone during the year was Rs 1,814 crore as against the target of Rs 2,000 crore. With respect to SARFAESI action, the bank has issued notices for 21,263 cases amounting to Rs 16,204 crore (cumulative). Amount recovered through compromise is Rs 2,267 crore from 6,693 accounts and partial recovery was made in 19,715 accounts, amounting to Rs 3,499 crore.
A separate Control Room (War Room) has been set up at Central Office with dedicated officers for analysing recovery efforts and also to accelerate the process of recovery.
The process is used optimally to show quantitative results in recovery efforts. The working of Control Room is monitored by a team of GMs.
The bank said that though overall the domestic macro situation improved in 2015, the banking sector continued to face challenges due to lack of recovery in asset quality, growth-oriented capital constrains and sluggish profitability.
Though the profitability of banks has been impaired in the short run because of the asset quality review, it is expected to support economic growth in a sustainable and profitable way, said the bank in its annual report. The performance of SCBs in 2015-16 remained subdued due to tepid growth in loans and advances.
The decline in credit growth is due to slowdown in industrial growth, poor earnings by corporates, rebalancing banks' portfolio against the background of rising bad loans, switching over to corporate financing needs to corporate bonds and commercial paper.
As far as IOB concerned, the bank said its incremental NPAs and slower credit uptake had forced the bank to be more cautious on large scale lending. With a view to diversify risk and improve margins, the bank focused more on retail and MSME sectors during the year.
