OBC confident of recovering dues from Kingfisher

Oriental Bank of Commerce (OBC) today said it is confident of recovering the dues from cash-strapped Kingfisher Airlines whose flying licence was suspended by the DGCA because of serious financial problems.

"We will definitely recover the dues from Kingfisher by March 31. The loan has slipped to the NPA (non-performing asset) category," OBC Chairman and Managing Director S LBansal said.

OBC's exposure to Kingfisher stood at Rs 50 crore, Bansal told reporters after the bank's board meet here. He said the bank would further restructure portfolios worth Rs 2,500 crore, with the prominent accounts being Punjab State Electricity Board and Moser Baer.

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He said that the bank was continuously shedding bulk deposits. Bulk deposits of the bank stood at 19.45 per cent at present and the target was to reduce it to 18 per cent by the end of the fiscal.

The bank was expected to notch a business turnover of Rs three lakh crore by March 2013, he said. Regarding West Bengal, he said that the bank's CD ratio in the state stood at 106 per cent.