Following a steep rise in bad assets in the past two quarters, public sector banks are devising various ways to ramp up the recovery in the rest of the fiscal, such as setting up special recovery cells and aggressive follow-up of sticky accounts, reports PTI.
Some banks are even mulling offloading some of the non-performing assets (NPAs) to asset reconstruction companies in the fourth quarter, to clean up the balance sheets.
Ms Panse also said a special department is taking care of the bank’s recovery efforts now.
Vijaya Bank had a cash recovery of Rs354 crore in the first half, while it upgraded Rs890 crore worth of portfolio during the same period.
Referring to this, a top bank official of IDBI Bank said though his bank can’t give a recovery target for the second half, it is looking at recovery on case to case basis.
“Our approach is case to case basis. While some of them are restructured, some are settled though compromise and in others we have to take legal route,” IDBI Bank's executive director Rajkumar Bansal said.
Bankers also said they would take a call by December end whether to offload some of the bad assets to asset reconstruction companies (ARCs).
“We had offloaded around Rs330 crore of bad assets last financial year to ARCs. Going forward, we will take a call about this,” Mr Narendra of IOB said.
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