Public sector lender Canara Bank expects bad loan recovery worth more than Rs 3000 crore to take place in this fiscal. At a time when non performing assets (NPAs) are becoming an increasing source of concern for banks, Canara Bank is able to make hopeful expectations.
The bank had made recoveries worth Rs 2000 crore in the fiscal prior to this.
According to CMD of the bank, Mr S Raman, despite the increasing stress on asset quality owing to rising, NPAs, "we have handled them well and on an upfront basis, enabling us to recover much more than what we recovered the previous year."
He said that system based NPA calculation mechanism has added as much as Rs 1200 crore to the NPA level of the bank.
"We have also appointed two General Managers to monitor existing assets so that they don't slip," he added.