Daijiworld Media Network - Udupi (HB/SP)

Udupi, Dec 25: Managing director and chief executive officer of Syndicate Bank, Mrutyunjay Mahapatra, said that the bank plans to collect share capital of around Rs 500 crore through allotment of preferential equity shares to the bank staff at a discount of Rs 20 to 25 as compared to market price.

Addressing bank employees meeting held on Monday December 24 at Syndicate Bank Golden Jubilee Hall, he said this amount can also be about Rs 50 crore more.

"The bank is facing the problem of huge nonperforming assets (NPA). As against the NPA limit of 0.6 percent of the total credit as prescribed by Reserve Bank of India, our bank's ratio stands at 12 percent. We are trying to bring it down to six percent by March, 2019. In order to help to bring down NPA further the central government has invested capital of Rs 728 crore and proposal for infusing the capital further is in talks," he informed.

When questioned by media persons about rumour about shifting of the head office to Bengaluru, Mahaptra said that although there is a notion that the bank's head office should be in the place where it was founded, in order to adjust itself to global market and information technology, it has become necessary to shift it to Bengaluru. He said that a symbolic office will continue to function here.

He hailed the bank as a true all India bank, having spread its wings all over the country. He also termed it as a bank of youngsters, pointing out that 67 percent of the bank staff are aged less than 36.

Manipal regional manager, Bhaskar Hande, welcomed and provided statistics about the bank. Shankar presented the programme. General managers, Satish Kamath, Kumarayya and V M Giridhar were present.