‘Steering panel to be set up for smooth amalgamation of 3 PSBs’

Source: The Hitavada      Date: 08 Oct 2018 09:36:56


Business Bureau,

Dena Bank MD Karnam Sekar says, the panel will comprise three managing directors of banks-- Dena Bank, Vijaya Bank and Bank of Ba

Country’s three public sector banks (PSBs)- Dena Bank, Vijaya Bank and Bank of Baroda, that are all set to merge and evolved as the second biggest banking entity, will form a steering committee by next week.

The committee will comprise managing directors of all the three banks and will oversee the transitional phase which is expected to consume next two to three quarters, said Karnam Sekar, Managing Director and Chief Executive Officer of Dena Bank on Sunday while talking to the media. The Central Government had earlier announced its intention to amalgamate Dena Bank, Vijaya Bank and Bank of Baroda to form the country’s second largest public sector bank.

Talking to the media, Karnam spoke on current scenario in banking sector, the present position of Dena Bank, status of NPA and strategies for recovery among other issues.
He said that Dena Bank has been working hard to bring down its non-performing assets (NPAs) from 22 per cent to 15 per cent. “We have formed an internal committee to decide the action plan and hope to come out with positive results by March 2019,” he said.

“Some major (NPAs) accounts have been placed before the National Company Law Tribunal (NCLT) which are in the process. But in many cases, Dena Bank is the minority lenders and therefore to a large extent we are dependent on other major lenders. In other accounts, where we are the lead lenders, we are focusing on recovery,” he said, adding that around Rs 2,000-3,000 crore of bad loans will be sold to asset reconstruction companies (ARCs) and some more will be dealt bilaterally through one-time settlements.
The bank is also looking ahead to sell out some of its assets to asset reconstruction companies. Apart from this, Sekar said that the bank would succeed in raising its CASA rate from 40 per cent to 45 per cent by March, 2019.

When asked about the present banking scenario, he said “Infrastructure, steel and power sectors were in trouble and so ere the banks who had poured money in these sectors. But today, the spending in infrastructure projects in the country has increased because of which we expect good results in coming days,” he said. He also said that the macroeconomic scene looks optimistic.

“In three quarters from now, I expect projects to start coming up,” he observed.  Nagpur Zone is among the 29 zones, is in the top 5 as far as performance is concerned.
Also present on the occasion were VNNS Saibabu, Zonal Head of Dena Bank, and his team.

Sekar had taken over as the chief of Dena Bank having 1,800 branches in the country on September 21. It was his first visit to the city after assuming the new post. On the occasion, Sekar conducted meeting with 48 managers of Nagpur Zone in the morning hours.