P&SB Gears Up To Cut NPA Assets

Updated: Jan 21 2003, 05:30am hrs
Punjab & Sind Bank , which has so far issued notices to 301 borrowers under the new securitisation law, has begun attaching assets of defaulters. A press release by the bank stated that the notices involved over Rs 167 crore in overdues. The bank on Thursday took possession of an industrial premises in Ludhiana and orders for taking over possession of assets of 13 other defaulters have also been received. According chairman NS Gujral, bank is issuing notices in suit-filed cases too and has initiated action against 63 companies.

Syndicate Bank Operating Profit Up 35%
The third-quarter operating profit of Syndicate Bank has risen 35 per cent from Rs 291 crore as on December 2001 to Rs 393.13 crore at the end of December 2002. A press release stated that the pre-tax profit surged 26.78 per cent to Rs 313.94 crore, and the net profit rose to Rs 243.94crore. Its capital adequacy ratio has risen from 12.12 per cent to 12.67 per cent during the current fiscal.

Seminar On General Insurance
Minister of state for finance Anandrao Adsul would inaugurate a national seminar on general insurance, being organised by the Lal Bahadur Shastri Memorial Foundation in New Delhi on January 31. It would address the theme, Tariff regime is a constraint in the growth of General Insurance. A second seminar is slated for March 26 to deliberate on The entry of private sector in General Insurance has not resulted in much needed penetration, availability of better products and improved customer service, a press release stated.

PNB Cuts Farm & SSI Loan Rates
Punjab National Bank (PNB) has lowered its lending rates for agriculture and small scale industry loans. The interest rates on agriculture and SSI advances ranging between Rs 2 lakh to Rs 25 lakh have been reduced to the level of its prime lending rate (PLR) and prime term lending rate, as the case may be, with effect from January 18, 2003, according to a bank release.

PNB has also reduced its rates to PLR minus 0.50 per cent for advances up to Rs 2 lakh under these two categories. Currently, its PLR stands at 11.25 per cent. The reduction would boost the banks advances to the priority sector which stands at 45 per cent, well above the national goal of 40 per cent advances to the sector, it said.