State-run United Bank of India has sold as seven loan accounts to asset reconstruction companies (ARCs) in the month of September as the lender wants to reduce its non-performing assets (NPAs), according to its managing director P. Srinivas.
” In a day or two we will complete the final transaction,” P Srinivas, who is also United Bank of India’s chief executive told FE. However, he declined to give details or value of the NPAs sold to ARCs.
The Kolkata-based bank’s NPAs in absolute terms stood at Rs. 6532.82 crore at the end of the June quarter. It has been trying to sell some parts of its bad loans, but could not as the lender was unable to get ‘right valuations’ for the assets. The bank expects to reduce its gross NPA as a percentage of total loans to 7.5% by this fiscal-end from over 9% at present.
Srinivas had earlier said his bank’s goal was to bring down the gross NPA amount to below Rs. 6,000 by end of the current fiscal through March 2016.
Meanwhile, rating agency India Ratings and Research (Ind-Ra) has affirmed United Bank’s Rs. 200 crore additional Tier 1 bonds at Long-term ‘IND A-’ with a negative outlook. It has also affirmed the bank’s long-term Issuer Rating at ‘IND AA-’ with a stable outlook. The public sector bank on Monday said it would issue additional Tier-I bonds to raise Rs.200 crore.
United Bank of India, on Thursday, launched platinum RuPay debit card under the chip platform for its high-end customers. With this card a customer can make a higher daily cash withdrawal and higher online transactions. “We are the first bank to take the advantage,” Srinivas added.