Uco Bank is mainly focussing on recovery in order to return to profit, its top officials said here today.
The state-owned bank is aiming to recover bad loans of around Rs 4,000 crore this fiscal, Uco Bank MD and CEO R K Takkar said on the sidelines of its AGM.
"We are looking at various avenues but the main one is recovery. Our provisioning coverage ratio at more than 60 per cent is quite healthy. So once resolutions under the NCLT happen, either through OTS (one-time settlement) or normal recovery channels, it will help us in not only reducing our NPAs but also writing back some of the provisions depending on the haircut we will have to take," Takkar said.
He was also hopeful of the bank registering profit and coming out of RBI's Prompt Corrective Action (PCA) framework in the next two years.
RBI had initiated PCA against the city-based bank in May in view of its high NPA and negative return on assets (RoAs).
Uco Bank has exposures to nine of the 12 large stressed accounts, which were identified by the RBI last year to get resolved under the Insolvency and Bankruptcy Code (IBC).
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The bank's overall exposure to these nine accounts is around Rs 4,300 crore.
Addressing the AGM, Takkar said the major focus of the bank is to reduce NPAs, recovery through account specific strategies and check of further slippages.
The lender's total cash recovery plus upgradation for the last financial year stood at Rs. 4290.12 crore, he said.
Its gross non-performing assets in absolute terms, went up to Rs 30,549.92 crore as on March 31, 2018, which is over 35 per cent year-on-year jump from Rs 22,540.95 crore in the year-ago period, he added.