The Finance Ministry will discuss the United Bank of India crisis with RBI Governor Raghuram Rajan on Friday. Finance Minister P Chidambaram also categorically said he does not think any other bank is in the same boat as UBI. “United Bank’s NPAs (non-performing assets) or bad debts is not an alarming case. The bank has managed to reduce its NPA by ₹1,200 crore in January and February,” Chidambaram said in a press conference here.
It may be recalled that the bank reported gross NPAs of ₹8,545 crore in the October-December quarter of 2013-14 as against ₹2,902 crore in the corresponding period of the previous financial year.
After the announcement, the bank’s Chairperson and Managing Director Archana Bhargawa took voluntary retirement, which was accepted with effect from February 20. The bank reported a net loss of ₹1,238 crore in the third quarter ended December 31, 2013, against a net profit of ₹42 crore in the corresponding period of the previous fiscal.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.