Target: ₹50
CMP: ₹43
The MD and CEO, Executive Directors, and other top management of Union Bank of India highlighted the various initiatives undertaken by the bank to: improve the underwriting standards; increased focus on speedy and timely resolution of stressed assets; better monitoring of the SMA book and; higher focus on recoveries, with a target to pare down the GNPA/NNPA ratio to less than 9 per cent/2.9 per cent by FY23.
The bank has segregated and shifted the loan portfolio to dedicated verticals for a recovery and follow-up.
The bank saw recoveries of ₹3,800 crore and is on track to achieve total recoveries of ₹15,000 crore in FY23. The bank has formed a Stressed Asset Management (SAM) department for large ticket-size loans. It has a total of nine such centres handling loans of ₹1-lakh crore. It has 19 ARBs handling loans, with an exposure of ₹1 crore - ₹ 25 crore, and is currently handling loans worth ₹14,000 crore.
Total standard restructuring book stands at ₹16,700 crore, of which ₹4,500 crore appears to be stressed. MSMEs may witness some stress, but the same will not impact overall asset quality.
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.