Syndicate Bank to Bring Down NPA Below 6% By March 2019

Syndicate Bank chairman and CEO Mrutyunjay Mahapatra @mmahapatra is aiming at bringing down the gross NPA to below 12% and the net NPA to below 6% in the current year from the existing level of 12.5 and 6 .5 % respectively.

 He further said the bank has made a profit in the third quarter after loss in the previous quarters of FY 19. He hoped for an early settlement of the Rs 18,000 crore bad loans that are before national company law tribunal (NCLT). He said the recent Rs 1600 crore fund infusion by the government along with previous tranches of funds have helped strengthen the capital base of the bank and the it may not need further support in the immediate future.

Bank may go for tier-1 bonds or rights issue depends on future requirements. He said that such a decision will be taken only after assessing the performance of the bank in the current year. The bank is betting on house, retail, MSME and gold loans for its growth.

The bank is planning to launch employee share purchase scheme (ESPS) in the first week of March. The ESPS scheme offers shares at a discount ranging from 23 to 25 %.The bank is expecting to raise Rs 500 to 600 crore from the process. The share of the government which stands at 80% now will be reduced by 3 to 3.5 % by this measure. Read more –

Syndicate Bank May Offer 25% Discount on Employee Share Purchase Scheme (ESPS)