Banks struggle on loan recovery

The banks operating in the state- PSU as well as private sector banks- continue to struggle with recovery of loans with the recovery rate standing at only 45.39 per cent (as on September 30, 2010).

The percentage of overdue is the highest for the Orissa State Financial Corporation (OSFC) at 99.55 per cent. OSFC had an overdue of Rs2663.49 crore by the end of September 2010.

Next to OSFC in terms of mounting overdue is the Orissa State Cooperative Agriculture and Rural Development Bank (OSCARD) with an overdue of 97.59 per cent. This bank had an overdue of Rs17.93 crore by September end.

These figures are as per the data compiled by the State Level Bankers' Committee (SLBC).

Among the public sector banks functioning in the state, Dena Bank had the lowest loan recovery rate of a meagre 1.31 per cent. The bank's overdue amount, however, was insignificant at Rs1.53 crore in the said period.

Similarly, Syndicate Bank's overdue stood at 80.36 per cent with an overdue amount of Rs53.22 crore. Central bank of India, to, had a high overdue rate of 75.62 per cent, its overdue amount being Rs 23.88 crore.

The PSU banks which have recorded a noteworthy performance on the loan recovery front are Corporation Bank (82.92 per cent), Punjab National Bank (80.22 per cent), Punjab & Sind Bank (83.86 per cent) and Bank of Baroda (81.28 per cent).

The average loan recovery rate of all the 25 public sector banks operating in the state stood at 57.23 per cent, with the combine overdue amount being Rs2586.73 crore.

As far as private banks are concerned none of the banks had any overdue amount by the end of September this ear barring Indus Ind Bank. Indus Ind Bank had an overdue rate of 75.72 per cent with its overdue amount being Rs3.67 crore.

The Regional Rural Banks (RRBs) have fared better on the loan recovery front with the average recovery rate of the five RRBs being 65.16 per cent and the overdue amount standing at Rs348.19 crore.

Among all the RRBs, Utkal Gramya Bank had the highest recovery rate at 70.79 per cent with its overdue amount standing at Rs189.81 crore.

The loan recovery rate of Baitarani Gramya Bank was 43.26 per cent, Kalinga Gramya Bank (40.99 per cent), Neelachal Gramya Bank (54.39 per cent) and Rushikulya Gramya Bank (48.31 per cent).

The Orissa State Cooperative Bank had a recovery rate of 56.9 per cent and the bank's overdue amount stood at Rs 1051.25 crore.