United Bank of India employees would continue to hit the streets and protest at the residence...
United Bank of India employees would continue to hit the streets and protest at the residence and workplaces of defaulters to recover bad loans until the bank’s asset quality improves, according to a senior official.
The silent protests being organised by the bank workers in cities, districts and smaller towns also aim at spreading awareness on non-performing assets (NPAs) among the people and sensitising them on the need to repay bank dues on time.
“We have been organising silent demonstrations at the residence of defaulters in various cities, districts and towns. It will continue till the bank’s asset quality improves. Our 15,500 employees are involved in this campaign and the results have been encouraging,” said United Bank of India executive director Sanjay Arya.
After the bank workers hit the streets of Kolkata to lead a ‘Silent March’ on March 22, the employees of Barasat (24 Parganas North) region of the public sector lender on March 31 organised a silent procession for creating awareness on bad loans. They participated in the procession with placards reading slogans like “Bad loans are injurious to your health! Pay dues on time, remain stress free!!!” After the march, the employees also went on a silent protest at the residence of defaulters, on Tuesday.
United Bank of India’s gross NPA as a percentage of gross advances in the quarter ended December 2014 stood at 12.03% and its net NPA ratio was at 8.50%.
The bank said although the NPA level, one of the highest in the banking industry, decreased in absolute terms in the December quarter year-on-year, its gross NPA ratio increased as the fall in advances was faster than the reduction in bad loans.
United Bank of India managing director and chief executive officer P Srinivas had said earlier that the bank was initiating several measures to boost its advances in the coming quarters and the lender was also aiming to reduce gross NPA ratio below 10% in a quarter or two.
Significantly, Reserve Bank of India (RBI) last month had removed lending restrictions imposed on United Bank. Expressing satisfaction on the development, the bank said these relaxations would go a long way in restoring normal functioning of the bank. “We are hopeful that this will lead to an accelerated business growth and a higher profitability,” Srinivas had said.
The public sector lender had reported a R41.78-crore net profit in the December quarter against a net loss of R1,238.08 crore in the year-ago period on the back of a sharp reduction in provisions and a heavy growth in other income.