The Mumbai headquartered, Central Bank of India has kick-started its process of profiling its defaulting borrowers. This exercise is aimed at assessing whether the default borrowers are able to repay their debt or should it be treated against the recovery law.
The exercise of profiling defaulters is urgency as the bank's bad loans has increased by 16 per cent year-on-year to Rs 8,456 crore as at March-end 2013.
The field staff have been asked by the bank to complete the profiling exercise by June-end so that appropriate action, for either reviving the borrower's enterprise or initiating recovery proceedings, can be taken, said a top official of Central Bank of India.
The bank wants information pertaining to the viability of the defaulting borrower's business and the value of the collateral in hand.
In the current financial year, CBI is seeking to bring down its bad loans pile from Rs 8,456 crore as at March-end 2013 to about Rs 8,000 crore.