'Threat of rise in NPA looms large'

Addressing the Bank’s Regional Heads at the regional heads’ review conference held at the Bank’s head office on Tuesday, to review the performance of all the 10 regional offices of the Bank for the quarter ending September 2011, he said that proper identification of parties and assessment of credit proposals are very much essential to prevent the malady of NPA.

“Regional heads have a very vital role to play in the emerging scenario,” he said and called upon them to understand their role and carry out their duties and responsibilities vis-à-vis the branches under their control.

Appealing them to curb NPA, he said that CASA deposits need focused attention.

Stating that the recent hike in repo and reverse repo rates by the Reserve Bank of India has set many challenges for the banks with interest rates moving northwards, he said that the banks will have to face the challenges with great caution and circumspection.

“While the investors in savings bank deposit accounts will cherish the action of recent deregulation of Savings Bank deposit rates, borrowers need to be set for a greater interest burden due to hike in key rates by RBI,” he said and added that success is dependent on persistent efforts and the days ahead are quite challenging.

In his welcome address, General Manager P Jairama Hande briefed the members about the recent implications of monetary policy and various macro developments besides explaining the highlights of the performance of the Bank for the Quarter 2.

General Managers K H Shrivaswamy Aithal, N Upendra Prahu, B Ashok Hegde and M V C S Karanth also spoke on the occasion.