INSUBCONTINENT EXCLUSIVE:
MUMBAI: Bank of Baroda has set up a dedicated team of lawyers to speed up recovery of bad loans that get embroiled in litigation.
The
state-owned bank has 380 high-value bad loan accounts with total outstanding of about Rs 15,000 crore
to bring back the bank's profits, erased by higher provisions against bad loans
In the January-March quarter of 2018, the bank incurred a net loss of Rs 3,102 crore
In the same period last year, it had made a net profit of Rs 154 crore.
According to Narayanan, a team of in-house lawyers are coordinating
directly with branches to hasten the recovery process
early settlement for the bank.
Besides, Bank of Baroda 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
relieved from the recovery responsibility, which will allow them to focus on acquiring new business and preventing fresh slippages of
Secondly, since the bad loan accounts are with specialised recovery branches, the regular branches will be able to focus on chasing the NPA
officers on various modes of recovery before they are posted to the stressed assets branches.
Bank of Baroda is among the few
government-owned lenders which are expected to improve their earnings in the April-June quarter, when most banks are likely to put up a poor
