Whacked by the disastrous financial numbers which were the worst in a decade, thanks primarily due to mounting bad loans , a beleaguered State Bank chairman Pratip Chaudhuri today told shareholders the bank has put in place a dedicated mechanism to tackle NPAs.
"For better control and management of stressed assets, a deputy managing director has been posted to focus exclusively on non-performing asset (NPA)management," Chaudhuri told the 56th AGM of the bank here this evening.
The nation's largest lender had reported a massive 99 percent plunge in net profits to a paltry Rs 20.88 crore for quarter to March 2011 as it had to make provisions of over Rs 9,000 crore, including a one-time Rs 500 crore for the teaser loans, towards bad loans, pensions and gratuity.
NPA provisions jumped 49 percent to Rs 3,264 crore in Q4 while its net NPAs rose to Rs 1,235 core.
"An integrated approach to review and manage stressed assets (both standard assets and NPAs)including rehabilitation and restructuring of such assets, has been put in place to arrest slippages and also for upgrading NPAs," Chaudhuri said.
Other measures that SBI has taken to rein in the mounting NPAs include holding more recovery camps, setting up an outbound call centre, engaging in wide publicity of the 3 percent interest subvention on repayment being offered by the government, and a regular review mechanism, besides close monitoring of special mention accounts and standard restructured accounts, he said.
Besides, the bank has also created a stressed asset management room and resolution centres. "We are aware of the need to improve asset quality and will keep our eyes fixed on the net NPA numbers. Most of the restructured assets are covered by a security. And these accounts have been with us for several years," he said.
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