Canara Bank announced a dismal set of Q1 numbers this week. The bank is now gearing up to set things right as far as recovery dues are concerned.
In the first quarter, the bank managed to recover about Rs 1000 crore and is looking forward to recover another Rs 500 crore in the next one month alone through an e-auction mechanism.
The bank has identified 2500 properties to be auctioned under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI). These properties are a mix of residential and commercial assets.
The bank wants the recovery, from selling these assets, to reflect in Q2 results and will hold the e-auction on September 22.
Canara Bank has set its FY16 recovery target at Rs 6000 crore and its Q1 recovery stood at Rs 1056 crore. The public sector lender's Q1 profit fell 40.7 percent year-on-year to Rs 478.84 crore on huge spike in provisions.
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