Indian Overseas Bank (IOB) is taking various measures to reduce its bad loans so as to come out of the Reserve Bank of India's (RBI) prompt corrective action (PCA) framework and its one-time settlement strategy has paid dividend in recoveries of bad loans. The Chennai-based lender had returned to black, registering a net profit of Rs 144 crore in the January-March quarter of the fiscal ended March 2020, after a hiatus of 18 quarters.
During the period under review (2019-20), the bank has realised that at the field level, one of the best recovery tools that has received very well is the special one-time settlement (OTS) scheme. The bank is making various dynamic efforts in reducing the NPA (non-performing assets) stock with the intention of early exit from PCA. Though the core objective in NPA recovery is recovery of the entire contractual dues without any hit on the profit front.
Indian Overseas Bank is a pioneer in many fields - Banking, Insurance and Industry with the twin objectives of specialising in foreign exchange business and overseas banking.
