The public sector lender, Indian Overseas Bank is thrusting on making recoveries from bad loans in FY 2014, said a top official of the bank.
According to Chairman and Managing Director of IOB, Mr. M Narendra, the bank has set a target to recover Rs 2500 crore from bad loans in Financial year 2014, against Rs 1700 crore recovered in FY12.
"We have vested our branch managers with power to enter into one-time settlement with borrowers, whose loan outstanding is up to Rs 5 lakh. Further, we are organizing camps (loan recovery) and resorting to Lok Adalats to make recoveries," said Mr. Narendra.
In the case of bad loans with an outstanding of Rs 1 crore or more, each general manager at the head-office has been assigned the responsibility of recovery in three to four regions. IOB's bad loans increased Rs 2,688 crore in FY2013 to Rs 6,608 crore as at March-end 2013.
The Chennai based lender, Indian Overseas Bank has recorded extreme dip in net profit by 88 per cent to Rs 59 crore for the fourth quarter which ended on March 31, 2013, against Rs 529 crore in the corresponding quarter last year.
The decline in net profit was an outcome of provisioning for bad and doubtful debts and restructured accounts, said Mr. M. Narendra.