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MOTORINDIA
l
February 2012
129
and infrastructure.
In the infrastructure segment, the
power and telecom sectors saw in-
creased impairments and restructur-
ing.
There is an increased possibility
of further deterioration in asset qual-
ity as deceleration in credit growth
is expected on the back of a slowing
economy, the RBI report said.
At the same time, some of the re-
ports suggested that the NPA level is
expected to cross Rs. 1.5 lakh crores
by the end of the current fiscal.
As per banks’ latest postings,
NPA levels saw 33 per cent increase
year-on-year for the September
quarter. Under the system generated
approach, a loan turns NPA on the
91st day of non-payment of EMIs.
The overall gross NPAs of the
banks stood at Rs. 1,16,954 crores,
2.7 per cent of the total advances as
on September 30, 2011, according
to a study.
These are watchful time for banks
as NPAs are on the rise. They should
take a hard look at the existing port-
folio, Roy said.
In a bid to thicken the cushion
against the risk, the Government in-
fused capital into many public sec-
tor banks. During 2011, the Govern-
ment provided a sum of Rs. 13,946
crores for infusion in public sector
banks.
Some of the lenders which got
fund infusion included Bank of
Baroda receiving Rs. 2,461 crores,
Indian Overseas Bank Rs. 1,054
crores, Punjab National Bank Rs.
184 crores and Oriental Bank of
Commerce Rs. 1,740 crores.
However, the country’s larg-
est lender, the State Bank of India,
which has been making a case for
capital support to the tune of Rs.
20,000 crores for more than two
years, is still to get funds from the
Government.
RBI also ended the era of control-
led interest rate regime by freeing
savings bank deposit rates. “Banks
are free to determine their savings
bank deposit interest rate,” RBI said
in its mid-quarterly review.
Following the deregulation, some
of the banks, including YES Bank
and Kotak Mahindra Bank, raised
the savings rate to about seven per
cent.
- PTI Economic Service
vehicle finance
VS Okhde joins IndianOil as
Director (Pipelines)
Mr. VS Okhde has taken over as the Director (Pipelines) of Indian
Oil Corporation Ltd. Prior to this elevation, he was Executive Director
(Exploration & Production).
Mr. Okhde brings with him diverse experience of over three decades
in various facets of hydrocarbon pipeline systems such as Operations,
Maintenance, Engineering Services and Projects. Additionally, he has
held senior management positions in the Business Development func-
tion.
He will head IndianOil’s cross-country network of crude oil, product
and gas pipelines, spanning almost 11,000 km with a capacity of over
75 MMTPA, the largest in the country.
A Mechanical Engineer from Regional Engineering College, Bho-
pal, Mr. Okhde also holds a degree in Executive Management from the
Management Development Institute (MDI), Gurgaon.
w
Men at the helm