United Bank of India (UBI) on Saturday said it expected to recover Rs 400-500 crore in cash this financial year, as it gears up to fasten its recovery process.
“We expect to recover Rs 400-500 crore in cash this financial year,” Executive Director Deepak Narang said on Saturday.
The bank's non-performing assets (NPAs) have increased to 3.47 per cent from 3.42 per cent in March, with major defaults being recorded in the aviation and steel sectors, the bank said. Currently, the bank’s gross NPAs stand at Rs 2,120 crore, while net NPAs are at Rs 1,096 crore.
“Our NPAs have grown marginally, by seven basis points, and loan defaults are in aviation, steel and MSME sectors,” he said, while attributing the rise in NPAs to the slowing economy. Asserting loan recovery needed to be quickened, Narang further said the borrowers receiving ‘stays’ from debt recovery tribunals on “flimsy grounds” also had an impact on recoveries.
The Kolkata-based bank plans to open 84 new branches in the current financial year to deepen its presence in southern and northern areas.
“We will open 80-84 new branches, and these would mainly be in the South and North,” he said.
