Indian Bank to prune NPAs to 5%

Hyderabad: Public-sector lender Indian Bank has set a target of reducing non-performing assets (NPAs) to five percent this fiscal from the existing 7.21 percent, according to a top official at the bank. The bank is also focusing on low cost CASA (current account, savings account) deposits.

Kishor Kharat, MD and CEO at Indian Bank, said: Indian Bank will establish three new zones across India. The new zones will be Amaravathi, Vadodara and Bardhamman. Our aim is to reduce NPA level from 7.21 percent to five percent for the current fiscal.

We offer four percent interest rate on the savings accounts with the balance of Rs50lakh and above. At present, the return on assets (RoA) is 0.67 percent and expect it to be around 0.80 percent this fiscal.”

Kharat on Monday visited Hyderabad office to inaugurate Indian Bank’s 111th year Foundation Day celebrations. Bank’s top management from Hyd and Karimnagar zones were present on the occasion, according to a release.

Indian Bank has 2,700 branches across India including 60 percent of the branches in south India. It has 300 branches in TS and AP. Speaking on the occasion, Kharat said: “Indian Bank has adopted five strategies to take the bank from ‘Good to Great’ status.

As part of this strategy, the bank will focus on enhancing business parameters, improvement in customer service, maintain asset quality, digitisation of banking and operational
efficiency.”