Kochi: Syndicate Bank hopes for an early settlement of Rs 18,000 cr of its soured loans comprising over 90 cases currently before the various National Company Law Tribunal (NCLT) in the country. Speaking to reporters in Kochi on Tuesday Syndicate Bank Managing Director and Chief Executive Officer Mrutyunjay Mahapatra said the bank aims to bring down its gross NPA below 12 percent and net NPA below 6 percent from the existing levels of 12.5 percent and over 6 percent.
Mr. Mahapatra also said the bank is likely to launch the scheme offering shares of the bank to employees at discounted rate by the first week of March. The discount will range from 23 to 25 percent based on employee status in the staff hierarchy with the lower-grade employees getting the maximum discount. The bank is hoping to mop-up Rs 500-Rs 600 cr through the measure.
Stating that the bank is adequately capitalised at the moment with the government providing Rs 3,956 cr for improving the capital base in three separate installments, Mr. Mahapatra said the bank also ha-ve the option to raise capital for business requirements either through Tie-r-I bonds or rights issue.
Mr. Mahapatra said the bank focus will be on home loan, retail and MSME sectors for the growth . He ruled out chances for any immediate cut in lending rates in view of the possible stagnancy in deposit growth due to the weak interest rates. The bank is planning three more branches in Kerala, he added.
