Expect promoters of restructured accounts will maintain their accounts: IOB

Indian Overseas Bank (IOB) had several quarters of very high non-performing loans (NPLs) and rising NPLs but the important part about the Q3 results was that asset quality improved and we saw a fall in the gross and the net non-performing assets (NPA). In an interview with CNBC-TV18, R Subramaniakumar, MD and CEO of IOB spoke about the results and his outlook for the company.

We have said that our focus is to reduce our NPAs and to increase our recovery in respect of the existing NPAs, he said.

The recovery for nine months period of FY18 is much higher than the whole of FY17. This is because the bank has recognized the accounts much earlier than that of the industry, he added.

Some stress will be there in the books because of the new direction but there is six months period available and during that period, we firmly believe that -- the promoters are also very keen to protect their assets – the promoters will try to maintain the account properly, which is good for the bankers as well as for the borrowers themselves, he added.

Have Rs 4,000 crore exposure to Strategic Debt Restructuring Scheme (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A) cases, said Subramaniakumar.

For full interview, watch accompanying video...