Improvement in asset quality not one-off case: Union Bank
Apart from setting up more credit camps for enhancing recoveries, the bank has, for the first time, set up call centres across the country for tracking troubled accounts. This enables the bank to keep tabs on accounts right from when there are early indications of trouble. Mundra said that the bank is on a mission to improve recoveries.
“It has not been a time for aggressive loan growth. Therefore we focused our energies on improving asset quality,” he said.
Mundra said that the bank has also taken a conservative view in recognising NPAs, rather then window dressing them as restructured assets. “It is possible that Union Bank's NPA levels have peaked as they recognise stressed assets upfront,” an analyst from a leading brokerage house said.
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