Of this amount, while the advances to the non-priority sector (known to be deliberate defaulters) accounted for only Rs 4.85 crore, the foreign advances alone accounted for nearly 70 per cent of the total write off at Rs 76.58 crore.
Explaining this, MM Vaish, executive director of UCO Bank said, These advances were bad and were being carried in our books for over 10 years, so we have decided to write them off now. In the current fiscal, we will write off the remaining amount.
The foreign advances were extended by our foreign branches in Hong Kong and London mainly to the trading community said Vaish.
More From This Section
The trading business in Hong Kong went through a slump thus forcing us to write off these advances, while in London, advances were secured
against property, the prices of which crashed, he added.
United Bank of India (UBI) wrote off Rs 36.51 crore during the financial year 1995-96.
Out of this amount , the advances to the non-priority sector constituted nearly 65 per cent at Rs 24.02 crore and for the priority sector over 30 per cent at Rs 12.31 crore.
UBI, which recorded a net loss of Rs 234.46 crore during the last fiscal, has accumulated losses of Rs 1,320.43 crore and NPAs of over Rs 1,400 crore.
Allahabad Bank, on the other hand, wrote off only Rs 6.71 crore as bad debts during the last fiscal of which advances to the non-priority sector accounted for 75 per cent at Rs 5.02 crore while priority sector advances accounted for Rs 1.69 crore.
Allahabad Bank, though it posted a net profit of Rs 5.62 crore in the previous financial year, still has accumulated losses to the tune of Rs 544.34 crore and NPAs of Rs 1,255 crore.