Concerned over the increase in bad loans in the first quarter, Chennai-based public sector lender Indian Overseas Bank (IOB) is tightening its recovery process. The bank witnessed a slippage of R865 crore into bad loans in the April-June quarter of 2012 against R485 crore in the same quarter in the previous fiscal.
?The non-performing assets (NPAs) in the first quarter has been slightly higher because of a slew of accounts, in lower, middle and the upper segments, turning bad. A number them had to undergo restructuring again. There was also challenge from the current global economic issues,? IOB chairman and managing director M Narendra said.
Though the bank has been aggressively undertaking recovery process, it has to be more aggressive in the future, he said, adding that the bank will focus more on retail and agri-loans. ?Last year we had deployed close to 200 special officers for recovery process, and this year we have to further the process in branch level,? he added.
The bank?s gross NPA in April-June quarter stood at R4,409.70 crore against R3,291.64 crore in the same period of the previous fiscal.