J&K Bank to launch another OTS scheme to bring down NPAs: MD & CEO
STATE TIMES NEWS
Srinagar: The Jammu and Kashmir Bank will launch another one-time settlement scheme for defaulters to bring down its non-performing assets, MD and CEO Baldev Prakash has said.
The Jammu and Kashmir Bank is already following a humane approach towards loan recovery, Prakash told PTI.
“We are doing it within the law. We have already given two OTS schemes for the defaulters and a large number of them have benefited already.
“We will be launching another OTS very soon which shall remain in force for at least three months. My appeal to the people (defaulters) is to avail the scheme and settle their dues, ” he said.
Union Finance Minister Nirmala Sitharaman on Monday said both public and private banks have been instructed that harsh steps should not be taken when it comes to the process of loan repayment and that they should handle such cases with sensitivity.
Prakash said the bank has almost doubled its profits at Rs 326 crore in the first quarter of the current fiscal compared to Rs 166 crore in the corresponding period of the last year.
He said the bank has shown good performance on all parameters by bringing down the gross NPA below six per cent to 5.77 per cent. The gross NPA in the corresponding period last year was 9.09 per cent.
Similarly, net NPAs, or bad loans, declined to 1.39 per cent, as against 3.02 per cent in the year-ago period.
On the future strategy, Prakash said the bank is progressing steadily towards achieving the target of Rs 2.5 lakh crore business this fiscal.
According to the Bank’s regulatory filings, the total income in the first quarter of the current fiscal rose to Rs 2,885 crore, from Rs 2,306 crore in the same period a year ago. Interest earned by the bank improved to Rs 2,657 crore, as against Rs 2,103 crore in June 2022. As a result, provision for bad loans came down to Rs 56 crore, as against Rs 135 crore allocated in the same quarter a year ago.
Capital adequacy ratio of the bank increased to 14.83 per cent, as against 13.02 per cent at the end of June 2022.
