"There has been an improvement in sentiments as several measures have been taken by the Centre and various state governments. But that has not percolated to the ground as little investments are taking place," Arya told PTI.
Recently, the banking regulator had lifted all lending restrictions which were imposed in December 2013 as the bank had posted a loss in that quarter owing to high NPA levels.
Arya said though restrictions had been lifted, RBI had said the bank would not be able to increase its credit-deposit (CD) ratio beyond 70 and capital adequacy ratio should not fall below 9.5 per cent.
In the given current economic scenario, UBI would not be aggressive in lending activity to raise credit.
"Our approach to corporates will be very cautious as we do not want to create further slippages. We will be very selective", he said.
The bank would also raise additional tier I capital to support its renewed lending activity, he added.
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