Canara Bank set to act tough against DCHL

Hyderabad: R K Dubey, Chairman and Managing Director, Canara Bank, on Wednesday said that the bank would go strongly against the city-based Deccan Chronicle Holdings Limited (DCHL) for the recovery of its loans. The bank, which has an exposure of Rs 350 crore to the trouble-hit media house, already provided fully for the amount after the loans turned non-performing assets (NPAs).

“We are going very strongly legally against the company and you will soon see the outcome. We have filed civil and criminal cases against promoters and the company Deccan Chronicle. We have even engaged highest and biggest lawyers to fight the case,” Dubey told media persons after inaugurating two-day Mega Retail and MSME Expo organised by the bank in the city.

The premier bank which also filed an FIR with Central Bureau of Investigation (CBI) against the company is expecting some interim orders from courts for attachment or sale of the properties mortgaged by the media house. “The loan is partially secured because there are securities which have multiple charges to various banks. That’s why there is a fraud committed by them on the banks. So, we can’t identify particular security. Therefore, whatever securities are there, the courts have to take a call now,” he explained.

The bank is expecting above 25 per cent overall credit growth during the current fiscal. “The retail loan growth is more than 30 per cent while the overall growth will be over 25 per cent in FY-14,” the CMD said.

On non-performing assets (NPA), he claimed that the ratios will come down. “The gross NPAs should be only 2.5 while the net would be around 2 per cent,” he explained. The NIM will be around 2.2 to 2.3 per cent as the bank has kept its interest rates lowest among the peers. “That’s our unique selling proposition,” he explained.