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  1. United Bank sells 7 NPA accounts

United Bank sells 7 NPA accounts

Public sector lender United Bank of India has sold as many as seven loan accounts to asset reconstruction companies (ARCs) in September as it wants to reduce its NPAs.

By: | Kolkata | Published: September 25, 2015 12:38 AM

Public sector lender United Bank of India has sold as many as seven loan accounts to asset reconstruction companies (ARCs) in September as it wants to reduce its NPAs.

“We have completed our transaction. We are able to sale as many as seven accounts. In a day or two, the  final transaction will be completed,” United Bank of India MD & CEO P Srinivas told FE.  Srinivas, however, did not divulge the total amount of NPAs sold.

“Unless we declare it additionally in our balancesheet , we may not be able to tell (the amount)” he said.

The Kolkata-based bank, whose NPAs in absolute terms stood at R6,532.82 crore at the end of the June quarter, was trying to sell some parts of its bad loans. But earlier, the transaction did not occur as the lender was not getting ‘right valuations’ for the assets. The bank expects to reduce its gross NPA as a percentage of total loans to be 7.5% by this fiscal-end from over 9% at present.

Srinivas earlier said his bank’s goal was to bring down the gross NPA amount to below R6,000 by March, 2016.

Meanwhile, rating agency India Ratings and Research has affirmed United Bank’s R200-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 R200 crore.

The lender 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.

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