State-owned lender Bank of Baroda has set up a team
of lawyers, called the ‘War Room Team’, to deal with bad loans whose recovery
is now embroiled in legal complications, reports The Economic Times.
BoB has 380
high-value bad loan accounts, in which the bank is either the sole lender or
the consortium leader. The total outstanding amount of these loans is about Rs
15,000 crore.
The bank
witnessed a net loss of Rs 3,102 crore in the January-March quarter of 2018. In
the same period last year, it had made a net profit of Rs 154 crore.
Following this,
the bank has taken up several “aggressive” actions for recovery to bring back
the bank’s profit. “We have started directly monitoring the progress of enforcement
action in those high-value accounts,” Venugopal Narayanan, head (legal), Bank
of Baroda, told the publication.
The lender has also
created a stressed asset management vertical, under which 15 existing stressed
asset-recovery branches and another 32 newly-created regional stressed asset
recovery branches are working.
The bank has arranged for special grooming of
officers on various modes of recovery before they are posted to the stressed
assets branches to yield better results.
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