Public sector lender Indian Overseas Bank (IOB) is likely to come out of the Prompt Corrective Action (PCA) framework of the Reserve Bank of India soon, said a top official.
“We are likely to come out of PCA soon,” said Karnam Sekar, MD & CEO, Indian Overseas Bank. “But, we cannot say whether it is [going to be] this quarter or [the] next quarter.”
Mr. Sekar, who assumed charge on July 1, made this observation based on the strong second quarter performance, which is to be announced soon.
“The non-performing asset (NPA) problem is behind us. The performance in the last few months is encouraging. Recently, the board had approved revised norms for one-time settlement (OTS) and it is gaining traction. The provision coverage ratio is at 73%-74% and it will be increased further. This will bring down the net NPA ratio,” he said.
Over the next few days, IOB in association with all the public sector, private sector banks and non-banking financial institutions will conduct loan melas in different parts of Tamil Nadu in two phases.
“This will give a definite boost to credit pick up in retail and MSME sectors. The loan pick-up during the festive month will be better than the second quarter,” he said. Asked about the target, he said the bank was lending about ₹500 crore per month to the retail sector and this would double in October.
