Kolkata, June 16 : United Bank of India (UBI), which referred 30 stressed accounts with an aggregated exposure of Rs 5,961 crore to National Company Law Tribunal (NCLT) in 2017-18 (FY18), is betting on the resolution of bad loan accounts to improve its net profit, its report said.
"Thirty accounts in which the bank is having exposure aggregating Rs 5,951 crore were referred to NCLT.
Resolution has taken place recently in one account in which, the bank received Rs 488.23 crore against an outstanding balance of Rs 628.42 crore," bank's Managing Director and CEO Pawan Bajaj said in the latest annual report.
"It is expected the resolution in more accounts would take place by end of this fiscal, which would bring down the gross and net NPA (non performing asset), thus improving the bottomline of the bank," he said.
The UBI said said despite constant follow up with the recalcitrant borrowers, monitoring of stressed assets and tough measures in hard account, the bank was not able to contain further growth in non-performing asset level which reached a level of Rs 16,552 crore, 24.1 per cent of gross advances.
It has experienced deterioration in its asset quality in the March quarter of FY 18 largely due to the revised framework of resolution of stressed assets introduced by the Reserve Bank of India, accounting for about 65 per cent of the fourth quarter slippages, the report said.
In the last financial year, its retail portfolio grew by 17 per cent in which the housing loan portfolio increased by 21.62 per cent and car loan portfolio increased by 29.28 per cent
The Kolkata-headquartered bank incurred a net loss for FY 18 to the tune ofA Rs 1,454.45 crore.
--IANS
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Source: IANS
