Tayals Open To Increasing Stake In BoR To 49%

Kolkata, Nov 10: | Updated: Nov 11 2003, 05:30am hrs
Tayals, the principal stakeholders in Bank of Rajasthan (BoR), are open to increasing their stake in the bank from 43 per cent now to 49 per cent, according to BoR chairman PK Tayal.

We are open to the idea of increasing our stake in Bank of Rajasthan up to the Reserve Bank of Indias permissible limit of 49 per cent. However, we are not sure by when we will be able to do that. I wish to increase the stake to 49 per cent just now. But we will have to do that according to the cash flow, he said at a press conference here on Monday.

Mr Tayal said that as on March 31, 2003, BoRs total deposit base was Rs 6,000 crore and total advance at Rs 2,300 crore. We plan to increase the deposit base to Rs 12,000 crore and advances to Rs 6,000 crore by 2006, he said, adding that BoRs net non-performing assets (NPA) as a percentage of total advances were at eight per cent as on March 31, 2003. We are confident of bringing down the net NPA figure to two per cent within the next couple of years, he said.

He said that BoR had recovered around Rs 250 crore of NPAs during the past four years as against a write-off of Rs 100 crore during the same period. The accumulation of fresh NPAs during the past four years has almost been negligible, Mr Tayal said, adding, the banks capital adequacy ratio has been comfortable at 15 per cent as on March 31, 2003, as against the RBI-stipulated norm of nine per cent.

He said that BoR had issued 100 notices under the newly promulgated Securitisation Act, involving a total default amount of Rs 100 crore.