The Bangalore-based public sector bank, Syndicate Bank has drawn up a strategy to lower its bad loans by at least 20 per cent this financial year.
Mr. M. Anjaneya Prasad, Executive Director of Syndicate bank said, "We are implementing stressed tiny assets recovery programmes, besides offering one-time settlements by conducting ‘Synd Adalats' every quarter to reduce NPAs by 20 per cent this year".
Syndicate bank's gross and net NPA levels fell in the financial year ended March 31, 2013 as compared to the previous year. They came down from 2.35 per cent to 1.99 per cent and 0.96 per cent to 0.76 per cent respectively.
Syndicate Bank's regional offices were given specific targets on recovery which were being closely monitored, Mr. Prasad added.
In the current fiscal, Syndicate Bank is aiming at 25 per cent growth in total business. In the last financial year, it logged 18 per cent growth in business at Rs 3.34-lakh crore and a net interest margin of 3.19 per cent.
Increased focus on retail, micro, small and medium enterprises and mid-corporates will be the key focus areas to achieve the projected growth target. The NIM for the full year could be above 3 per cent, Mr. Prasad added.
The process of restructuring stressed assets is also going on. As on March, 2013, assets worth Rs 9,125 crore were restructured. "Assets worth t Rs 200-300 crore may be restructured in the next quarter," the official said.