Bank of Baroda Expects Capital Boost From Bad Loan Recoveries

India’s Bank of Baroda expects to step up bad loan recoveries this financial year despite the temporary relief on repayments imposed by the central bank during the lockdown on the economy, Bloomberg News reported. That will help the country’s third-largest state-run bank improve its capital ratios and boost new lending, according to Executive Director Shanti Lal Jain. “We will be focusing on all avenues to recover bad loans including asset sales, one-time settlements,” said Jain, who heads Bank of Baroda’s stressed assets management and credit monitoring. “Recoveries will help in bolstering our capital and give us further room to lend,” he added. The deferral on loan repayments until the end of August and a ban on filing fresh cases in the bankruptcy courts before September have made it hard for Indian banks to predict the effect of the coronavirus pandemic on their bad loan ratios. Read more

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