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Sunday, December 1, 2013

Recovery hubs help United Bank trim bad loans by Rs 800 crore

The United Bank of India (UBI) on Saturday said it had reduced non-performing assets (NPAs) to the tune of Rs 800 crore. A further Rs 600 crore would be recovered “shortly”.

“Recovery hubs have been formed at strategic centres and the Bank has reduced NPAs by Rs 800 crore and will upgrade another Rs 600 crore, shortly,” it said in a release.

For the quarter ending September 2013, UBI reported a net loss of nearly Rs 490 crore. Increased provisioning (by nearly four-fold) to Rs 987 crore, as compared to Rs 259 crore in July–September 2012 impacted the bottom line.

It also reported increased NPAs. Gross NPA (till September 13) rose by Rs 3,868 crore, to approximately Rs 6,286 crore — a 160 per cent increase from Rs 2,418 crore in September last year.

Net NPAs for the period (July to September 2013) too increased by 270 per cent to approximately Rs 4,385 crore; from Rs 1,188 crore in the corresponding quarter last fiscal.

Increased Business

UBI, according to the release, has crossed Rs 200,000 crore in total business (deposits and advances); witnessing a 30 per cent year-on-year- growth in advances to the SME, agriculture and retail sectors.

Customer base increased by 30 lakh and nearly 150 branches were opened across 14 new states over the last five months.

Capital Infusion

Meanwhile, the Bank pointed out that it was “well capitalised” with capital adequacy of 9.48 per cent. It was the first Bank to raise Tier-II (Basel III compliant) capital of Rs 500 crore during the current fiscal.

UBI will get Rs 700 crore as capital from the Centre.

Source: thehindubusinessline


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