:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

IOB CLEANS UP BALANCE-SHEET WITH RS 970-CR WRITE-OFF

In an effort to clean-up its balance sheet, Indian Overseas Bank wrote bad debts worth about Rs 970 crore in 2010-11. The bank also sold 37 bad accounts for Rs 415 crore to an asset reconstruction company (ARC).

The bank had bad debts of Rs 3,089 crore (2.7 per cent) for the financial year ending March 31, 2011, compared with Rs 3,611 crore (4.4 per cent) the previous year.

The bank would continue to chase these bad accounts and not let these defaulters off-the-hook although the loans are written off in the balance sheet, the bank officials told Business Line.

According to the bank's annual report, sale of 37 bad accounts with a book outstanding of Rs 415 crore was sold to an asset reconstruction company for a sale consideration of Rs 265 crore. Since the book value of the bad debts is only Rs 200 crore, the bank would make a profit of Rs 65 crore on the sale of the loans to ARCs.

Although the book outstanding was Rs 415 crore, it is the net book-value of bad debts that are considered. Net book-value is book outstanding minus provisioning made on the account. The net book-value of these bad debts was only Rs 200 crore.

The bank made a cash recovery of Rs 1,402 crore (including recovery from written-off accounts and recovery of undebited interest).

The bank managed to recover Rs 206 crore through compromise settlement involving Rs 354 crore.

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