UBI takes a U-turns, says no issues with Finacle's NPA tool

Statement comes a day after it claimed Infosys' software failed to identify bad loans in its small accounts

United Bank of India (UBI), which markets itself as 'the bank that begins with U', has taken a U-turn a day after it blamed deficiencies in Infosys' Finacle software for failing to identify non-performing assets (NPAs) in its small loan accounts.



"We would like to clarify that there are no inherent deficiencies in Finacle. The version of the NPA tool currently used at UBI needed certain additional customisations to meet our specific needs, which are feasible and are being addressed now. We value the strong relationship we have shared with Finacle for many years. We regret any miscommunication or misconception created otherwise," Deepak Narang, executive director of the bank, said in a joint statement with Infosys, which was submitted to the Bombay Stock Exchange (BSE).
 

The statement comes after UBI issued a statement on Wednesday claiming deficiencies in Finacle software and blaming Infosys for not rectifying it despite repeated requests. The charge was promptly dismissed by Infosys, which pointed out that the software had the proven ability and framework required to address asset classification and NPA reporting as per the norms prescribed by the Reserve Bank of India (RBI).



"It is inaccurate to say Finacle has inherent deficiencies in any form or manner. Finacle's NPA module has been adopted by and is running successfully in leading banks across India. No bank has raised any issues regarding the performance of Finacle's NPA module," Haragopal M, global head of Infosys' Finacle, said in today's statement.

Developed in 1999, Finacle is currently used by 183 banks across 84 countries. Infosys claims that the software serves 14 per cent of the world's banked population.