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    Central Bank of India will achieve net NPA threshold of PCA framework by FY20, says CEO Pallav Mohapatra

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    Central Bank of India will achieve net NPA threshold of PCA framework by FY20, says CEO Pallav Mohapatra

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    Central Bank of India reported a turnaround performance in the first quarter of FY2020. Pallav Mohapatra, MD & CEO of the bank, spoke about the results and shared outlook for FY20.

    Central Bank of India reported a turnaround performance in the first quarter of FY2020. Pallav Mohapatra, MD & CEO of the bank, spoke about the results and shared outlook for FY20.
    “We are putting a tight control on further slippages and we are sure that by the end of Q2 we will be much below March quarter,” said Mohapatra.
    On the NPA front, he said, “This year we want to have a reduction in non-performing assets (NPAs) from Rs 32,000 crore to Rs 20,000 crore. Out of this around Rs 2,000-3,000 crore will be technical write-off that means against the provision, rest will be the actual recovery.”
    “Will achieve net NPA threshold of prompt corrective action (PCA) framework by FY20 and we are also hopeful of reaching capital adequacy ratio of 11.5 percent by FY20,” added Mohapatra.
    "The leverage ratio should touch below PCA framework by Q3 of FY20," Mohapatra said.
    About raising capital, Mohapatra said, “We have got an approval from the board as well as from the shareholders to raise capital of Rs 5,000 crore which also includes infusion of capital by the Government of India.”
    “So far the discussion is on in the board meeting about the size of the capital from the market and also the mode through which to raise this capital. We are working out on a combination of follow on public offer (FPO) and qualified institutional placement (QIP),” he added.
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