Allahabad Bank looks at Rs 5,500 cr recovery in FY19
Kolkata, June 27 : State-run lender Allahabad Bank is looking at a recovery of around Rs 5,500 crore in the current fiscal, an official said on Wednesday.
The bank has submitted a roadmap to the Centre and if everything goes "well and smooth" as per its projections, it was likely to come out of prompt corrective action (PCA), imposed by the Reserve Bank of India (RBI), by March 2020, the official said.
"We are expecting Rs 3,000 crore recovery through resolution in NCLT (National Company Law Tribunal) in the entire financial year, another Rs 2,000 crore through normal recovery process and Rs 400-500 crore through asset sales," Allahabad Bank Executive Director N.K. Sahoo said.
"We have recently recovered around Rs 1,300 crore from the resolution of Bhusan Steel and Electrosteel Steels," he added.
The bank has an outstanding exposure of Rs 4,000 crore in several accounts referred to NCLT including Uttam Galva, Alok Industries, Essar Steel, he said, adding that it was hopeful of recovering from these accounts in the current fiscal.
The bank may have to take a hair-cut upto 50-60 per cent in these accounts, he added.
"We have created a NCLT cell to effectively monitor the NCLT accounts. We have almost 94 (stressed) accounts referred by us as well as by other lenders amounting around Rs 12,000 crore.
"Almost 45 per cent of our gross NPA is in the NCLT," Sahoo told shareholders here at the 16th Annual General Meeting of the Allahabad Bank.
Capital requirement for the lender during the current fiscal would be close to Rs 9,000 crore, Sahoo said on the sidelines of the meeting.
"The bank would require close to Rs 9,000 crore worth capital this fiscal," he said.
Of the total capital requirement, the bank requested the government to pump in Rs 7,000 crore and was looking to raise close to Rs 1,900 crore through different modes this fiscal.
This apart, it is hopeful of raising close to Rs 500 crore from sale of non-core assets.
"A roadmap has been submitted to the (Finance) Ministry. If everything goes well as per the bank's projection, we are expecting to come out of PCA by March 2020," he said.
At the end of the 2017-18, gross NPA (non performing assets) of the bank stood at Rs 26,562.76 crore as compared to Rs 20,687.83 crore in FY 17 (2016-17) and Net NPA remained at Rs 12,229.13 crore as on March 31, 2018 as against Rs 13,433.51 crore in FY 17.
Owing to high non-performing assets (NPA) and negative return on assets (RoA) for two consecutive years, the bank was brought under prompt corrective action framework by the RBI on January 2, Sahoo told shareholders.
In fact, subsequently, the RBI had imposed additional restrictions on Allahabad Bank under prompt corrective action (PCA) framework.
It was asked to restrict expansion of risk-weighted assets (RWA), reduce exposure to high-risk loans and restrict accessing or renewing wholesale deposits.
The bank had posted a net loss of Rs 3,509.63 crore in the March quarter of 2017-18.
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Young woman from MP who shot to fame during Kumbh found to be minor, case registered against husband
Khargone (MP) (PTI): The National Commission for Scheduled Tribes on Friday confirmed that a young woman from Madhya Pradesh who became famous due to her viral videos during the 2025 Maha Kumbh has been found to be a minor after an inquiry.
Citing the findings of an inquiry panel set up by the commission, local BJP leaders alleged that her interfaith marriage in Kerala last month was a case of "love Jihad", and sought legal action.
While the panel had submitted its report in March, ST commission chairman Antar Singh Arya confirmed its findings to the PTI on Friday.
A case for alleged kidnapping and offences under the Protection of Children from Sexual Offences (POCSO) Act has already been registered against her husband, a Muslim man, at Maheshwar on the basis of the inquiry findings, police said.
The girl gained national fame after her videos while selling garlands and rudraksha at the Maha Kumbh went viral on social media and also earned her a role in a film.
The National Commission for Scheduled Tribes set up an inquiry panel after receiving a complaint on March 17 from Pratham Dubey, a resident of Uttar Pradesh, that she was a minor and was being exploited.
Maheshwar BJP MLA Rajkumar Mev and BJP mandal president Vikram Patel, armed with documents, told reporters on Friday that her marriage in Kerala was a case of "love Jihad" and she should be brought back home.
'Love jihad' is a term used by right-wing groups to allege a conspiracy by Muslim men to lure Hindu women into marriage to convert them to Islam.
Police said an investigation is underway, and further action would be taken accordingly.
The girl, who belongs to the nomadic Pardhi community, got married at a temple in Kerala in March. The interfaith marriage drew angry reactions from rightwing Hindu groups.
Her family members and film director Sanoj Mishra -- who had offered her a film role after she became famous -- too alleged that it was 'love Jihad'.
As per the inquiry conducted by the ST commission, records at the Maheshwar government hospital showed the woman's date of birth as December 30, 2009 which meant she was 16 years and two months old at the time of marriage, said Dubey, the complainant.
On a complaint filed by her father, police registered a case against the girl's husband at Maheshwar police station on March 25 for alleged kidnapping and under the POCSO Act and the SC/ST (Prevention of Atrocities) Act.
Police sources said that a separate case was also registered on March 24 under section 137(2) of the Bharatiya Nyaya Sanhita (taking a minor from lawful custody of guardian without their consent) based on the the commission's findings.
