State-owned Allahabad Bank is looking to recover about Rs 800 crore of bad loans going ahead, said Mallikarjuna Rao, managing director and CEO of the bank, adding that the lender recovered Rs 600 crore in quarter 3.
The buzz over the last few days has been that the Reserve Bank of India (RBI) may look at relaxing the prompt corrective action (PCA) framework.
“We clocked only around Rs 500 crore of recoveries in Q2 but so far in this Q3, we have already crossed more than Rs 650 crore and we are expecting to reach around Rs 800 crore, that is including recovery and upgradations, which would put control on the slippages. In Q2 we have increased around Rs 3,111 crore whereas in this quarter it would be lesser than that,” said Rao.
“The roadmap is very clear for Allahabad Bank. The asset quality is the primary focus for us. Asset quality includes two points, one is that the recovery in non-performing assets (NPA) accounts as well as controlling the slippage ... from last quarter, after declaration of Q2 results, we are very much concentrating on this area and the concentration includes reaching out to the customers,” he said.
“We are also trying to sell our non-core assets and real estate which would fructify during Q4 whereupon we are expecting to get around Rs 800-1,000 crore. So with this, we are confident that we would be able to achieve the capital adequacy ratio by March 2019,” Rao added.