Syndicate Bank: Net NPA may come down to 5%

By: |
November 16, 2019 3:31 AM

“However, the recovery rate has improved drastically. During the first quarter, we were recovering around Rs 18 crore daily, which has gone up to Rs 26-28 crore per day, now,” he said.

Syndicate Bank, Net NPA, NPA, banking news, industry news, Syndicate Bank share, Syndicate Bank merger, Syndicate Bank online banking, IL&FS, DHFL,  Religare, IBCMahapatra said the bank has an exposure of approximately Rs 2,000 crore in IL&FS, Rs 1,500 crore in DHFL and Rs 600 crore in Religare.

Syndicate Bank said on Friday that the net NPA of the bank is likely to come down to 5% or less with the daily recovery rate increasing to Rs 28 crore. The Supreme Court judgment that the decision of creditors will be final in terms of distribution of NPAs, which has gone to the Insolvency and Bankruptcy Code (IBC), will help the bank, Mrutyunjay Mahapatra, MD & CEO, said.

“We all are seeing a lot of resolution happening. We have roughly around Rs 2,500 crore in the IBC and when these things come down, the net NPA will come down drastically. It may touch 5% or go below 5%,” he said. He added that the provision coverage ratio is currently 69% and is likely to increase as there are pressures in some accounts like IL&FS, DHFL and Religare.

“However, the recovery rate has improved drastically. During the first quarter, we were recovering around Rs 18 crore daily, which has gone up to Rs 26-28 crore per day, now,” he said.

Mahapatra said the bank has an exposure of approximately Rs 2,000 crore in IL&FS, Rs 1,500 crore in DHFL and Rs 600 crore in Religare. All the pipeline recoveries in DRT (Debts Recovery Tribunal) and SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act) and NCLT (National Company Law Tribunal) will gain traction and the financial performance of the last two quarters of the fiscal will be much better,he said.

He added that the bank, as a whole, is progressing well, during the last results (Q2FY20), the bank had a growth of 8% year-on-year and the total business stood at Rs 4.83 lakh crore.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India’s top brands: HDFC Bank leads list seventh time in a row
2India Ratings downgrades banking sector outlook to negative from stable
3DHFL: Union Bank issues demand notice to Wadhawans