Canara Bank has indicated that it will seek to improve the asset quality further this fiscal by containing non-performing assets (NPAs) and focusing on stronger recoveries. It will would also lay stronger thrust on enhancing CASA (current account savings account) and retail loan performance this fiscal.
“In 2013-14, we had one of the best years on asset quality wise. Our gross NPA came down to 2.48 per cent (2.57 per cent as of March 2013), while net NPA was reduced to 1.98 per cent (2.18 per cent). We hope to do it better this year. During this quarter, our asset quality improved and we have done well in containing NPAs,” bank Executive Director V. S. Krishnakumar told The Hindu after inaugurating its 5-star branches in three locations here.
“We have been very proactive on the recovery front. We have three general managers for recoveries and monitoring the accounts. The RBI has come out with new guidelines for monitoring the accounts. While we already had the system in place, we have now a structured way of doing it. With improvements in sentiments, we don’t expect any major slippages in first quarter,” he added.
The bank had a record cash recovery at Rs.5,494 crore in 2013-14 when compared with Rs.4,006 crore in 2012-13.
Outlining plans for the current fiscal, he stated that the bank would focus strongly on CASA. “We improved CASA ratio (domestic) to 25.9 per cent in 2013-14 from 25.1 per cent a year ago. We intend to take this to 30 per cent,” he said adding, “All our new branches that were opened in unbanked areas and rural and semi-urban locations would contribute to improving CASA. Also, we are also expanding in places like U.P., Bihar, Bengal and Northeast that offer huge potential for CASA performance.’’ It will be opening of 1,250 new branches this year (1,027 branches opened in 2013-14), and seeks to sustain strong growth across retail categories such as housing, vehicle and personal loans as also small and medium enterprises.
