Source :mydigitalfc:Mar 16 2011 , Chennai
Indian Bank, which has been witnessing a significant rise in its non-performing assets (NPA) level over the past few quarters, is now banking its hopes on its new proposal to bring down the level of its.
The Chennai-based bank is planning to recruit retired banks officials for the recovery of NPAs for a prescribed fee.
The bank has invited applications from retired officers and clerks of all banks and plans to appoint one such recovery agent for recovery of 100 accounts in each zone.
The agents would be paid fee of 5 per cent of the recovered amount for unsecured advances and 3 per cent of the recovered amount for secured advances, said the bank, in its website.
Few months back, Crisil in its research report had warned that banks in India could see deterioration in their asset quality and their NPA levels may rise to 3.6 per cent in 2010-11 against 2.3 per cent in 2008-09. Apart from the normal additions to gross NPAs, the rise will also be due to the deterioration in the quality of few restructured assets, the report said.
Indian Bank saw its gross NPA rise by 46 per cent during the nine-month period ended December 2010, to Rs 752 crore (1.02 per cent).
The net NPA of the bank saw a three-fold rise to Rs 417 crore in the period April-December 2010 against Rs 89.73 crore in the period April-December 2009.
The bank has invited applications from retired officers and clerks of all banks and plans to appoint one such recovery agent for recovery of 100 accounts in each zone.
The agents would be paid fee of 5 per cent of the recovered amount for unsecured advances and 3 per cent of the recovered amount for secured advances, said the bank, in its website.
Few months back, Crisil in its research report had warned that banks in India could see deterioration in their asset quality and their NPA levels may rise to 3.6 per cent in 2010-11 against 2.3 per cent in 2008-09. Apart from the normal additions to gross NPAs, the rise will also be due to the deterioration in the quality of few restructured assets, the report said.
Indian Bank saw its gross NPA rise by 46 per cent during the nine-month period ended December 2010, to Rs 752 crore (1.02 per cent).
The net NPA of the bank saw a three-fold rise to Rs 417 crore in the period April-December 2010 against Rs 89.73 crore in the period April-December 2009.
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