The distressed lender with an alarming rise in bad loans, has called all its regional heads on Sunday at the headquarters in Kolkata to begin fire-fighting. The bank saw its sticky loans rising three times to Rs 8,546 crore in the nine month to December 31, from Rs 2902 crore in the year ago period. It has now decided to put all its energies in bad loan recovery.
"After a threadbare discussion with the field functionaries, the top management of the bank headed by executive directors expressed their confidence in upgrading and reducing at least Rs 2000 crore non performing assets through intensive recovery drive which will substantially improve its working results in March quarter," the bank said in a press statement.
The lender has reduced interest rate in deposits over one year to 8.50 per cent from 8.75 per cent a year and increased base rate to 10.50 per cent from 10.25 per cent in order to improve margin. It has also initiated several cost cutting measures to come out of the woods.
Dion Global Solutions Ltd.