Money & Banking

UCO Bank says 25-30 per cent of borrowers opted for moratorium

PTI Kolkata | Updated on June 25, 2020 Published on June 25, 2020

Public sector UCO Bank said on Thursday that 25 to 30 per cent of its borrowers have opted for the moratorium which was allowed by the Reserve Bank of India (RBI).

A senior UCO Bank official said that most of the borrowers continue to make monthly payments and it shows the quality of those who have taken loans from the bank.

“Nearly 25 per cent to 30 per cent of the bank’s borrowers have opted for the moratorium. It only shows the quality of borrowers,” the official said.

The RBI has extended the moratorium on loan repayment by another three months which ends in August.

The Supreme Court has recently made an observation that banks are charging ‘interest on interest’ from those who opted for the moratorium.

To this, the official said that RBI had already submitted an affidavit with the apex court stating that waiver of interest will risk the financial viability of the banks.

UCO Bank has also signed an agreement with SBI Life Insurance for selling the insurer’s policies from its branches across the country.

“The bank’s aim has always been to continuously create greater values for our customers,” he said.

With the new tie-up, the bank would now be offering a much wider range of Insurance products, the official said.

The fourth quarter results of last fiscal of the bank will be announced on Friday. PTI dc NN NN 06251803

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Published on June 25, 2020
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