Allahabad Bank To Hit Primary Mart On Oct 23

Allahabad Bank will be approaching the primary capital market on October 23 for raising Rs 100 crore through an initial public offer of 10 crore equity shares at Rs 10 each.

As a part of its move to spruce up the balance sheet, the bank aims to recover Rs 500 crore non-performing assets (NPAs) during the year 2002-03 against Rs 350 crore achieved in the previous year.

The bank has also sent letters to as many as 700-odd small and mid-sized organisation under the securitisation and asset reconstruction ordinance.

Chairman and managing director of the bank, B Samal, hoped to recover close to Rs 80 crore through the ordinance.

The bank had written off Rs 164 crore last year. Its net NPA currently stands at Rs 1160 crore.

The bank has outlined a number of short-term and long-term strategies for containing its non-performing -assets.

Short-terms strategies for controlling NPAs include critical review and monitoring of all potential NPA accounts so as to sustain them as performing assets.

The bank has drawn a strategy of vigorous follow-up of all potential performing accounts where upgradation or cash recovery is possible.

It will also lay emphatic stress on all compromise settled cases for recovery of dues as per agreed terms. It will also ensure execution of decrees and recovery.

Recovery under the Debt Recovery Tribunal will also be followed up expeditiously.

All-Bank has drawn an 11-point-strategy for containing its NPA in the long run. These include tight fencing of fresh NPA addition, identifying potential NPA accounts, tackling of sub-standard accounts on top priority basis.

All-Bank has also made it a point to meet all NPA borrowers and settle every such NPA account.

The bank will also make full use of the compromise committee at regional and other branches, including full use of high power head office compromise committee.

It is also in the process of outlining separate strategies for suit files cases, decreed cases, and rural branches