In a bid to recover its non-performing assets (NPAs), Syndicate Bank has established the Stressed Asset Management (SAM) vertical comprising credit and legal experts. This vertical was created with around 1,200 members of the bank’s own staff. The duty of this vertical is to come up with a strategy to help bank managers devise new plans for asset recovery.
Syndicate Bank currently has stressed assets worth Rs.27,000 crore. Large corporates have contributed to a major chunk of these outstanding loans. The share of these corporates is estimated to be around Rs.14,000 crore. The sole focus of the Stressed Asset Management team will be the recovery of these NPAs.
The bank’s Executive Director Ajay K Khurana stated that members of the SAM vertical will be given training on the insolvency proceedings and the National Company Law Tribunal (NCLT). Following this training, these members will be deployed in different parts of the country based on the number of NPA accounts in a specific region. Among the 1,200 staff members, only 100 will be equipped to deal with accounts with outstanding loans worth Rs.5 crore and higher.
The bank is also currently focusing on changing its strategy for giving loans. The senior official stated that the bank will now focus on giving loans to MSMEs and the retail sector. In addition to this, the bank is also focusing on giving loans to the agricultural sector. Though NPAs are unavoidable in these sectors, they are also crucial for the improvement of the country’s economy. He also noted that the bank is looking forward to disbursing loans worth Rs.10,000 crore to MSMEs in the next two months.
Syndicate Bank is currently working on ways to ease the ways in which consumers can get loans. The bank is planning to introduce a new system where loans up to Rs.5 crore can be disbursed within just 15 minutes.