More thrust on recovery mechanism to bring down bad loans
United Bank of India plans to offload stressed assets amounting to Rs 200-300 crore to asset reconstruction companies (ARCs) by the end of this fiscal.
According to Deepak Narang, Executive Director, the bank is already in talks with several ARCs for the sale of its stressed assets.
“We have identified 70 accounts amounting to Rs 200-300 crore for offloading to ARCs. We will float tender and invite bids for these accounts,” Narang told newspersons on the sidelines of a press meet to announce the launch of U-Connect — a platform for share trading.
Valuation is one of the biggest issues in sale of such assets. “We are looking for the right kind of price for these assets,” he said.
The bank is also laying thrust on recovery mechanism to bring down its gross non-performing assets to 3.25 per cent (3.88 per cent during the July-September quarter) by the end of this fiscal.
United Bank had set a target of achieving cash recovery of Rs 450-500 crore by the end of this fiscal. The bank has already recovered close to Rs 200 crore during the first six months, Narang said.
During the July-September quarter, the bank witnessed fresh slippages of about Rs 200 crore. “We hope things will improve now and we are looking at ways and means of arresting fresh slippages and boosting our recovery mechanism to bring down NPAs,” he pointed out.
United Bank has launched an integrated online platform for stock trading in association with the Calcutta Stock Exchange. The product will help investors in Tier-II and -III cities by giving them access to both NSE and BSE.
This will also help boost the bank’s fee income and strengthen its current and savings bank account portfolio, Bhaskar Sen, Chairman and Managing Director of United Bank, said.