Karur Vysya Bank has started to “exit mark” certain loan accounts that show signs of weakness in a bid to reduce its exposure to potential non-performing assets (NPAs). The bank has taken this step to minimize its potential losses and maintain its financial health. “Exit marking” is a process where a bank identifies and separates out loan accounts that are at risk of turning into NPAs, thereby limiting its exposure to such accounts. The bank’s move comes at a time when the Indian banking sector is grappling with a significant amount of NPAs, which has been a major concern for lenders. Karur Vysya Bank’s decision to “exit mark” loan accounts is a prudent step to manage its risk and maintain its asset quality. The bank has identified loan accounts that have not been performing well and have initiated the process of exit marking, which includes restructuring or selling off such accounts. This move is expected to help the bank reduce its NPAs and maintain its financial stability.
Here’s a rewritten version of the sentence:Karur Vysya Bank is taking the drastic measure of closing underperforming loan accounts with a view to reduce its exposure to risk.
by newsworm | Dec 2, 2024 | Banking, Karur Vysya Bank