FinMin orders forensic audit of UCO Bank

The government has ordered limited forensic audit into some non-performing accounts of Kolkata-based UCO Bank to find out any irregularities in sanction of loans.
"We have ordered a limited forensic audit after complaints were filed with regards to some accounts. Those accounts have turned non-performing," official sources said.
This is the fourth public sector bank where forensic audit is being conducted after alleged cash-for-loan scam came to light with the arrest of Syndicate Bank Chairman and Managing Director S K Jain earlier this month.
Jain was arrested for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of Bhushan Steel and Prakash Industries.

Forensic audit is being conducted against Dena Bank and Oriental Bank of Commerce (OBC) where some officials were suspected of misappropriating funds worth Rs 436 crore from their fixed deposit customers.
The gross non-performing assets (NPAs) of the state-run UCO bank stood at Rs 6,346.32 crore at the end of June. In percentage terms it was 4.31 per cent of the total advances. At the same time, net NPA of the bank stood at Rs 3,344.02 crore.

The bank sold NPAs worth Rs 1,545 crore during the fourth quarter of 2013-14. This was almost five times the value of bad loans it sold in the previous three months.

Gross NPA of the public sector banks increased from Rs 1,64,462 crore to Rs 2,27,264 crore at the end of March 2014.
Financial Stability Report released by RBI recently said that infrastructure, iron and steel, textiles, mining and aviation services contributed significantly to the level of stressed advances.
The share of these five sub-sectors in total advances is the highest for public sector banks.
The amount of loan restructured rose more than 11-fold between 2010-11 and 2012-13.
At the end of 2010-11, the restructured loans stood at Rs Rs 6,614.40 crore that rose significantly to Rs 76,479.06 crore at the end of 2012-13.