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AllBank confident of pruning sticky assets

Calcutta, March 31: Allahabad Bank, which has one of the highest non-performing assets (NPAs) in the country, expects to reduce it by around Rs 550 crore in 2002-03.

Addressing a press conference here today chairman and managing director B. Samal said: “Up to March 21, the bank has reduced its NPA by Rs 520.76 crore. We will be able to achieve the figure of Rs 550 crore.”

Samal, who retired today, said notices have been issued to 1,430 borrowers who together owe Rs 456.51 crore. R. S. Software, a Calcutta-based infotech company, is one of those which has been told to pay up Rs 2.2 crore. The bank’s gross NPAs are around Rs 1,200 crore.

Talking about business plans, he said AllBank will offer its depositors life cover of Rs 1 lakh for a year under an alliance with Life Insurance Corporation (LIC).

All depositors with minimum balance in their accounts can insure themselves by paying a modest premium. Offered as group insurance, the plan promises hassle-free settlement in the event of death within the period.

Also on the cards is a special scheme under which the bank will pay a premium, to be worked out later, on behalf of high net worth individuals.

The arrangement will help the bank garner more low-cost deposits, while Life Insurance Corporation will benefit from a spike in policy sales.

Earlier, the bank had tie-ups with ICICI Prudential Life Insurance to sell its life insurance products and with National Insurance Company to hawk its non-life covers.

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