The Mumbai based Central Bank of India, has planned to start a loan recovery campaign, from farmers in the Punjab region, as a measure to bring down its non-performing assets (NPA). The main focus of the campaign will be to promote loan repayment from farmers in Punjab.
It is to be noted that the bank's non-performing assets in Punjab have reached 10% of the total agri-loans disbursed by the bank there. The campaign is part of the bank's plan to reduce its gross NPA to 3.5 % from 4.83 % and net NPA to 2.5 % from 3.09%.
On this matter, Chairman and Managing Director of CBoI, Mr. MV Tanksale said, "The bank is setting off loan recovery Rath campaign across villages in Punjab to apprise farmers of benefits of timely payment of loans. Under the campaign special vans will also educate farmers about bank's various schemes." So far, the bank has advanced loans to farmers in Punjab and Haryana to the tune of Rs. 1000 crore in the agriculture segment. Mr. Tanksale further added, "The NPA in farm credit is around 10% in Punjab."
The bank has a market share of 3.5 crore customers throughout various segments such as retail, agriculture, MSMEs resulting in growth of 13.5% in deposits and 17.5 % in loans for the current fiscal. "Retail banking will be growth area and major growth drivers will be retail, agriculture and MSME," he further added.