OBC reschedules Rs 1,082-cr advances to reduce NPA

Oriental Bank of Commerce (OBC) is rescheduling advances worth Rs 1,082 crore to curtail its non-performing asset, which at present is 0.76 per cent, the bank's CMD Alok K Misra said today.

Misra was responding to a query on what the steps the bank was taking to reduce NPA in the current market situation.

He said the process of rescheduling of advances as per the guidelines of the Reserve Bank of India was already on and till now advances of Rs 1,082 crore have been rescheduled.

On why the rate of interest on deposit was not curtailed despite steep reduction in inflation, which stood at 3.36 per cent of the week ended February 14, Misra evaded a direct reply and said the government's aim behind cut in CRR and repo rate was to bring consistency in the economy.

He said the economic meltdown has adversely affected the banking sector as it caused lack of capital, lack of liquidity, increase of rate of interest and most importantly lack of confidence and trust.

Regarding the bank's diversification, Misra said it has entered into life insurance joint venture, which provides a range of solutions to people particularly the uninsured rural and semi-urban populace where the awareness about life insurance and its benefits is low.