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Boosting credit growth and stepping up recovery initiatives will be the key areas of focus for Kolkata-based United Bank of India this year.
Higher credit growth and improvement in loan quality will help improve profitability, said Mr Deepak Narang, Executive Director, United Bank.
Higher credit growth and improvement in loan quality will help improve profitability, said Mr Deepak Narang, Executive Director, United Bank.
Recovery
The bank is looking to reduce its gross non-performing assets (NPAs) by almost half in the first two quarters of this fiscal by arresting fresh slippages and laying thrust on recovery, Mr Narang told Business Line.
United Bank's gross NPAs stood at Rs 2,176 crore as on March 31, 2012. The bank is already in the process of recovering Rs 250-300 crore in the first quarter of this fiscal and is hopeful of recovering another Rs 800 crore in the second quarter.
“We are aggressively pursuing recovery through the securitisation route wherever possible. We have identified about 70 NPA accounts and we will take possession soon, thereby recovering about Rs 300 crore,” he said.
The bank will also look at offloading NPAs of Rs 350 crore to asset reconstruction companies (ARCs) in the next quarter. “In the second quarter we hope to recover about Rs 350-400 crore through our internal mechanism and another Rs 300-350 crore by offloading to ARCs,” he said.
With these efforts in place, the bank hopes to bring down its gross NPAs to 2 per cent (3.4 per cent) and net NPAs to less than one per cent (1.7 per cent) by the end of this fiscal.
“We are hopeful of achieving this target through our combined initiative of securitisation, compromise sale, write-offs and preventing further slippages,” he said.
United Bank's gross NPAs stood at Rs 2,176 crore as on March 31, 2012. The bank is already in the process of recovering Rs 250-300 crore in the first quarter of this fiscal and is hopeful of recovering another Rs 800 crore in the second quarter.
“We are aggressively pursuing recovery through the securitisation route wherever possible. We have identified about 70 NPA accounts and we will take possession soon, thereby recovering about Rs 300 crore,” he said.
The bank will also look at offloading NPAs of Rs 350 crore to asset reconstruction companies (ARCs) in the next quarter. “In the second quarter we hope to recover about Rs 350-400 crore through our internal mechanism and another Rs 300-350 crore by offloading to ARCs,” he said.
With these efforts in place, the bank hopes to bring down its gross NPAs to 2 per cent (3.4 per cent) and net NPAs to less than one per cent (1.7 per cent) by the end of this fiscal.
“We are hopeful of achieving this target through our combined initiative of securitisation, compromise sale, write-offs and preventing further slippages,” he said.
Credit growth
At a time when the industry is talking about sluggish growth in credit, United Bank is hopeful of achieving 22-25 per cent growth in advances this year.
“We will lay special focus on the mid-corporate segment as that will help yield better returns. We will also look at boosting our retail portfolio,” he said.
The bank will however go slow on certain sectors such as commercial real estate.
shobha@thehindu.co.in
“We will lay special focus on the mid-corporate segment as that will help yield better returns. We will also look at boosting our retail portfolio,” he said.
The bank will however go slow on certain sectors such as commercial real estate.
shobha@thehindu.co.in
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