United Bank of India (UBI) is looking to reduce substantially its gross non-performing assets by March 2013. The bank, on Tuesday, appointed ASREC India as a recovery agent to help achieve this goal.
After signing an agreement with A. K. Choudhary, the Managing Director and Chief Executive Officer of ASREC, here on Tuesday, UBI Managing Director Bhaskar Sen said the bank did not plan to transfer any of non-performing asset (NPA) accounts to ASREC, but recoveries would be made against a commission.
UBI’s gross NPA stood at Rs.2,200 crore as at June-end. This was 3.47 per cent of the bank’s advances, which is proposed to be brought to 2 per cent by March 2013. “UBI hopes to reduce its NPA by around Rs.200 crore through this arrangement,” Mr. Sen said.
An official spokesman of the bank said that today’s [Tuesday’s] development came on the back of a directive issued by the Union Finance Ministry, which asked public sector banks to appoint asset recovery companies such as ASREC, ISARC and ARCIL as recovery agents. The UBI board has already given its nod for appointing three ARCs as recovery agents.
via The Hindu Newspaper http://www.thehindu.com/business/Industry/article3804162.ece
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