You are here: Home » Companies » News
Business Standard

Indian Bank files insolvency cases against 7 a/cs worth Rs 1,200 cr at NCLT

Targets to close the year with Rs 3.6 lakh cr in business, plans to raise Rs 1,200 cr

T E Narasimhan  |  Chennai 

mutual fund, tax, insurance, saving, invest, bank, PF, loss

State-owned said it has initiated cases at the National Company Law Tribunal (NCLT) against seven more accounts worth Rs 1,200 crore. is the sole lender in all these accounts, said Kishor Piraji Kharat, managing director and CEO of the bank.

Out of the 12 accounts identified by the Reserve Bank of India (RBI) as large non-performing asset (NPA) accounts, the bank's exposure is to around eight of them, which are together worth Rs 2,650 crore, Kharat told Business Standard.

The bank has made a provision of Rs 130 crore during the first quarter of the financial year 2017-18 and has plans to make a provision of Rs 365 crore for the whole year for these accounts.

Bank officials also said that in another 10 accounts, which were worth around Rs 200 crore, either suppliers or creditors have initiated actions. In a few cases, the promoters themselves have approached to declare

The bank's provisions and contingencies for the first quarter were Rs 879.99 crore as against Rs 595.83 crore a year ago.

Speaking about NPAs, Kharat said that they are very much under control. The banks' gross NPAs dropped to 7.21 per cent from 7.47 per cent on a quarter-on-quarter basis. By the end of the year, the bank wants to bring gross NPAs down to five per cent.

The lender is also planning to sell assets worth Rs 540 crore to asset reconstruction

Kharat said that by the end of the current calendar year, the bank is planning to raise capital to support growth.

"We are planning to issue around 4.75 crore shares and to raise around Rs 1,200 crore," said Kharat.

The bank has set a target of around Rs 3.6 lakh crore in business for the current financial year.

Already, the bank has crossed Rs 3.25 lakh crore and, by September, it will cross Rs 3.40 lakh crore. The target of Rs 3.6 lakh crore is easily achievable, Kharat added.

The bank has also set a target of three per cent net interest margin, which will be aided by retail, agriculture, MSME and corporate clients.

"Our focus will be in RAM (retail, agriculture, and MSME), which are easy to handle and NPAs are also less; plus they are good business also," said Kharat.

During the first quarter of 2016-17, Indian Bank's loan book had corporate exposure to the tune of 51 per cent, which was brought down to 49 per cent during the first quarter of 2017-18. On the other hand, retail exposure grew to 51 per cent from 49 per cent.

First Published: Sun, July 23 2017. 11:26 IST