NEW DELHI: Syndicate Bank Managing Director Mrutyunjay Mahapatra is expecting recovery of bad debts from the cases before the National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code (IBC) and resolution of cases at bank level.
The bank has already recovered about Rs 800 crore in the first quarter in FY20 and It is expected to mobilize Rs 4,000 crore from recovery of bad loans during the current financial year i.e. FY20.
Finance Minister Nirmala Sitharaman has proposed, in the Union Budget for 2019-20, an allocation of Rs 70,000 crore for public sector banks (PSBs) to improve credit flow in the economy.
Also, in order to enhance the credit growth, a request was made to the government for funds and the bank likely to get fund from the government during the financial year.
“The government has proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation. Record recovery of over Rs 4 lakh crore has been achieved in the last 4 years. The provision coverage ratio is at its highest in 7 years and credit growth has improved to over 13 per cent”.
During the first quarter ended June 30, Syndicate Bank reported narrowing of its net loss to Rs 980.46 crore due to fall in provisioning for bad assets.
The bank had posted a net loss of Rs 1,281.77 crore in the same quarter previous fiscal.
Total income during the June quarter rose to Rs 6,080.69 crore from Rs 5,637.51 crore in the year-ago period.