Business Standard

AllBank hopes to come out of PCA in 2020


Press Trust of India Kolkata
State-owned lender Allahabad Bank is targeting to come out of the prompt corrective action (PCA), imposed on it by the Reserve Bank of India in the wake of the deterioration of its health, by 2020, a top bank official said.
The bank, whose gross NPA stood at Rs 26,562.76 crore at the end of March 2017-18, is hoping to recover around Rs 5,500 crore in the current fiscal, UCO Bank executive director N K Sahoo said at the sidelines of Allahabad Bank's AGM here today.
Sahoo chaired the AGM after the erstwhile CEO and MD of Allahabad Bank Usha Ananthasubramanian's power was taken away after being accused in a CBI chargesheet in the Nirav Modi case.
"A roadmap has been submitted to the (finance) ministry. If everything goes well as per our projection, we are expecting to come out of PCA by March 2020," he said.
"We expect Rs 3,000 crore recovery through resolutions in NCLT courts and another Rs 2,000 crore through normal recovery process and Rs 400-500 crore through asset sales in the current fiscal," he said.
The bank, he said, has recently recovered around Rs 1,300 crore from the resolution of Bhusan Steel and Electrosteel Steels.
The lender has an exposure of about Rs 4,000 crore in several accounts already referred to the NCLT including Uttam Galva, Alok Industries, Essar Steel and is expected to recover from these within the year.
"Almost 45 per cent of our gross NPA is in the NCLT," Sahoo said adding a cell has been created by the bank to effectively monitor the these accounts.
He said the capital requirement for Allahabad Bank during the current fiscal would be close to Rs 9000 crore.
Of the total capital requirement, the lender requested the government to pump in Rs 7,000 crore and is looking to raise close to Rs 1,900 crore through various instruments in this fiscal.
The bank is also planning raise to Rs 500 crore from sale of its non-core assets, he added.
At the end of the 2017-18, Allahabad Bank's gross NPA stood at Rs 26,562.76 crore.
The lender had posted a net loss of Rs 3,509.63 crore in the March quarter of 2017-18, company sources said.

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First Published: Jun 27 2018 | 6:15 PM IST

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