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Expect net NPAs to come down to 5.98% by March 2019, says Corporation Bank

Updated : February 21, 2019 11:16 AM IST

State-owned Corporation Bank is expecting its net non-performing assets (NPAs) to come down to 5.98 percent by March 2019, said PV Bharati, managing director and CEO of the bank, adding the overall capital adequacy ratio will go up by 11 percent now.

The government has approved the recapitalisation of 12 public sector banks (PSBs) to the tune of Rs 48,000 crore. In this round of funding, Corporation Bank and Allahabad Bank are getting a lion's share of funds to exit the prompt corrective action (PCA) framework.

“The overall capital adequacy will go up to 11 percent now. Provision coverage ratio (PCR) will be going up, we will be using it to bring down the net non-performing assets (NPAs) percentage. We expect it to come down below 6 percent, it will be around 5.9 percent,” said Bharati.

“We have been following up our recovery on a regular basis. So far we have been able to do around Rs 4,600 crore and we hope another Rs 1,000 crore also will be coming in during this quarter. So apart from the expectation of capital, we have been continuing with the process of our recovery. We have had a substantial recovery under e-auction. So in addition to this, the recovery process is continuing to happen,” she added.

In terms of loan book, she further mentioned, “We will be in a position to increase our credit and we expect around Rs 10,000-12,000 crore of credit we should be able to increase. So going forward, we will be requiring growth capital in the coming financial year. As of now, we should be able to manage the growth within the available capital ... we have targeted Rs 1,22,000 crore of advances for the year ending March 31, 2019. So we should be in a position to achieve that.”
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