The public sector lender, Allahabad Bank has decided to offload non-performing assets (NPAs) worth Rs 540 crore.
Mrs. Subhalakshmi Panse, Chairman and Managing Director of Allahabad bank said, "The deal is on the table and the process will be completed by next month".
Allahabad bank saw the bad loans rising in the second quarter which ended on September 30, 2012. The bank then had drawn up a strategy for better NPA management.
Mrs. Panse said, "We have put in place a three-pronged strategy by creating a separate vertical, doubling the recovery targets for the staff and offloading some portion of NPAs to ARC (asset Reconstruction Company)".
The net interest margin for the current financial year is expected to be around 2.9 per cent from 2.85 per cent, Mrs. Panse said.
Allahabad bank is also making efforts to increase its non-interest income through loan syndication, which the bank had stopped recently.
"The current accounts and savings accounts share in our deposits will also go up to about 31.5 per cent from current 30 per cent by this year-end and to 34 per cent by March 2014," Mrs. Subhalakshmi said.