UCO Bank sets recovery target of Rs 8000 cr from NPA in FY’20

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Published: June 26, 2019 9:27:00 PM

This recovery will be part of the 14 accounts for which the Committee of Creditors (CoC) approved the resolution but NCLT has not passed orders.

The bank has recovered Rs 1,163 crore so far from six accounts for which NCLT resolution was concluded. (Reuters File photo)The bank has recovered Rs 1,163 crore so far from six accounts for which NCLT resolution was concluded. (Reuters File photo)

State-run Uco Bank has set a recovery target of Rs 8,000 crore from the stress account in FY’20. “We have set a target of at least Rs 2,000 crore of recovery each quarter and by this, we are aiming for at recovering Rs 8,000 crore in the entire year,” Uco Bank MD and CEO AK Goel said on the sidelines of its AGM here on Wednesday.

The lender was also hoping at least Rs 1,000 crore of recovery by September from the resolution process under the Insolvency and Bankruptcy Code through the National Company Law Tribunal (NCLT), he said. This recovery will be part of the 14 accounts for which the Committee of Creditors (CoC) approved the resolution but NCLT has not passed orders.

The bank has recovered Rs 1,163 crore so far from six accounts for which NCLT resolution was concluded. The lender has 183 NPA accounts with a total exposure of around Rs 25,096 crore to NCLT. Of which 109 accounts with an aggregate exposure of Rs 15,865 crore were admitted in the tribunal while 72 accounts for a total exposure of Rs 8,226 crore were not admitted.

The remaining two accounts were sold. He said the bank is eyeing to lower its net NPA ratio at less than 6 per cent by end of the current fiscal.

Goel also said its top 100 accounts having a total exposure of about 70-80 per cent of the bank’s total NPA are being “monitored rigorously” by its 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.

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