By Swati Pandey
MUMBAI, Dec 9 (Reuters) - Indian state-run lender Canara
Bank expects asset quality to improve by 20-30 basis
points by March as it focuses on aggressive debt collections and
better monitoring of performing accounts, a top official said.
The No. 5 ranked state bank expects new bad loans to fall to
about 13 billion rupees ($211 million) in the December quarter
from 28 billion rupees in June, Chairman and Managing Director
R.K. Dubey told Reuters.
It will recover and upgrade loan accounts of 40-50 billion
rupees in the period, he added.
"I want to slowly improve the bank's asset quality. Even if
I reduce it by 10 to 15 basis points by December I will still be
against the market trend," Dubey said over the phone from
Bangalore where he is based.
For the quarter-ended September, Canara Bank's net profit
was mostly flat compared with a year earlier. Non-performing
loans improved to 2.64 percent from 2.91 percent in the
The bank, which is growing its loans by about 30 percent,
plans to raise 25 billion rupees through Tier-II bonds by March
to shore up its capital base, Dubey said.
($1 = 61.6325 Indian rupees)
(Editing by Prateek Chatterjee)