Chennai-based State-owned Indian Overseas Bank (IOB) expects resolution of about Rs. 18,000 crore of non-performing assets (NPAs) under the Insolvency and Bankruptcy Code, 2016 during the second half of the current fiscal. Besides, the bank is hoping to come out of the prompt corrective action (PCA) framework of the Reserve Bank of India (RBI) next fiscal.
NPA cases worth about Rs 18,000 crore are pending before various National Company Law Tribunals. IOB is hoping the resolution of some big accounts at NCLTs will further strengthen the bank’s financial position.
On the back of resolution and pick up in advances, the bank aims to bring down the gross NPAs below the 10 percent mark by March. During the second quarter, the bank registered a substantial improvement in asset quality as gross non-performing assets (NPAs) plunged to 13.04 percent of gross advances from 20 percent at the end of September 2019.
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