City-based United Bank of India (UBI) on Tuesday appointed asset reconstruction company ASREC India as a recovery agent to realise the bank's dues. UBI Chairman Bhaskar Sen and MD & CEO of ASREC (India) signed an agreement here to this effect. Sen said there would be no transfer of non-performing assets (NPA) accounts to ASREC.
The asset reconstruction company (ARC) would only charge a commission for the recovery made by it. He said the absolute gross NPA of the bank stood at Rs 2,200 crore as of date.
Sen added that the bank was expecting to realise at least 10 per cent of that through ASREC (India) during the current financial year.
He said ASREC would only supplement the services of the bank personnel in the recovery of the dues. ASREC Managing Director A K Choudhary said the ARC was making profits and assets under management were to the tune of Rs 1,000 crore.