Gross NPA as a percentage of total loans had fallen 239 basis points (bps) to 25% from 27.39% during the previous quarter.
Public sector lender UCO Bank is aiming to recover around `8,000 crore of bad loans during the current financial year to cut its high non-performing asset level.
“We have set a target of at least Rs 2,000 crore of recovery per quarter, and by this we aim at recovering Rs 8,000 crore in the entire year,” the bank’s MD and CEO AK Goel told reporters on the sidelines of its annual general meeting held on Wednesday.
“The bank is expecting at least Rs 1,000 crore of recovery by the end of the September quarter from the resolution process of insolvency cases through the National Company Law Tribunal (NCLT),” Goel said.
The lender has so far referred 183 NPA accounts, with a total exposure of Rs 25,096 crore, to NCLT. Of which 109 accounts, with an aggregate exposure of `15,865 crore, were admitted in the tribunal, while 72 accounts for a total exposure of Rs 8,226 crore were not admitted and remaining two accounts were sold.
Notably, during the March quarter last fiscal, gross non-performing assets (NPAs) of the city-based lender in absolute terms had fallen close to 4% quarter-on-quarter to Rs 29,888.33 crore from Rs 31,121. 79 crore in the December quarter. Gross NPA as a percentage of total loans had fallen 239 basis points (bps) to 25% from 27.39% during the previous quarter. At the end of the March quarter of FY19, its Net NPA ratio had decreased 276 bps sequentially at 9.72%.
Goel said his bank’s top 100 NPA accounts, having a total exposure of about 70-80% of its total bad loans, were being “monitored rigorously” by the top management. The lender, which is under the prompt corrective action (PCA) framework of the Reserve Bank of India, is hopeful of making profit by end of the current fiscal. The bank is aiming at lowering its net NPA ratio at less than 6% by end of this fiscal.
“By end of this fiscal, we are hopeful to come out from the PCA,” Goel said, adding the lender made ‘Sankalp-2020’, a mission to come out of the PCA through multi-pronged strategy by boosting low-cost deposit base, increasing retail, agriculture and MSME business, strengthening of credit monitoring and recovering aggressively in NPA accounts.