United Bank of India looks to bring down gross NPA below Rs 6000 cr

United Bank of India looks to bring down gross NPA below Rs 6000 cr

Kolkata-headquartered United Bank of India (UBI) would make efforts to bring the absolute gross NPA figures below Rs 6,000 crore by the end of the fiscal, a top official of the bank said.

"Our main aim will be to lower the absolute gross NPA level below Rs 6,000 crore by the end of the financial year", MD and CEO of UBI P Srinivas said.

The gross NPA level in percentage terms was around 9.5 per cent. "We will have to bring it between 7.5-8 per cent", Srinivas told reporters on the sidelines of FICCI Banking Conclave here today.

However, there would be some addition to NPAs, he said.

When asked if the bank would sell bad assets to asset reconstruction companies (ARCs), Srinivas said this would happen only when a good value is secured.

He added that the bank is hopeful of getting capital from the government, adding that it had sought Rs 500 crore.

Else, the bank had also drawn up alternative fund-raising plans as well, he said.

On its exposure to the beleaguered Electrosteel Castings, Srinivas said talks are on to find a new promoter. "We hope to get a new promoter by September this year. SBI is talking to some of them and this is being discussed internally", he said.

Source :Bankupdates.