Canara Bank recovers Rs 1,476 crore through IBC in FY2023-24

Canara Bank recovered Rs 1,476 crore through cases referred to NCLT during FY2023-24. The bank in its annual report released on 31 May 2024, said that as on 31 March 2024, 374 cases have been referred to NCLT under IBC for resolution, where Canara bank has an exposure (book liability) of around Rs 37,683 crores. Out of these cases, the bank has initiated the resolution process by filing NCLT application in 87 cases involving book liability of Rs 6,833 crore. Out of total 374 NCLT referred cases, in 326 cases admitted by NCLT, the bank’s aggregate admitted claim amount is Rs 50,853 crore.

The bank is expecting substantial recovery during FY2024-25 through resolution/liquidation.

As on March 2024, the outstanding Stressed Assets Portfolio (including restructured Standard Accounts) of the bank stood at Rs 65,194 crore, accounting for 6.79% of Gross Advances. Gross NPA of Canara Bank stood at Rs 40,605 crore, accounting for 4.23% of Gross Advances and Net NPA stood at Rs 11,823 crore, accounting for 1.27% of Net Advances as at March 2024.

The cumulative cash recovery including recovery in written-off accounts stood at Rs 10,038 crore and upgradation at Rs 1,035 crore during FY 2023-24. Provision Coverage Ratio (PCR) stood at 89.10% as at March 2024. Bank has recovered Rs 6,718 crore under recovery in written-off accounts during FY 2023-24. Slippage during the year has been contained to Rs 10,457 crore.

During FY24, Canara Bank sold 2044 properties amounting Rs 1,665 crore and settled 2822 accounts amounting to Rs 1,013 crore on account of initiating actions under the SARFAESI Act.

The bank conducted 7,541 Recovery Meets during FY 2023-24 that has resulted in settlement of 3,60,872 accounts covering book liability of Rs 6390 Crore. Besides, the bank took several initiatives to contain slippages and speed up recovery from overdue loan accounts. These include, conduct of Can Adalats at branch level, cluster Adalats at regional office level and Mega Adalats at Circle office level for one-time settlements (OTS), Lok Adalats at district level, regular follow-up of overdue in loan accounts through Call Centre, conduct of e-auctions for sale of seized assets and initiation of stringent recovery measures against wilful defaulters.

As on March 2024, there were 1757 wilful defaulters with an outstanding amount of Rs 16,321 Crore.

Also See: IBC helped recovery of 14% bad loans in FY24: SBI Annual Report