State-run Uco Bank
expects to recover a “major amount” from its bad assets through NCLT route as
accounts eligible for insolvency resolution are being explored ‘vigorously’.
The Kolkata-based lender’s total cash recovery plus upgradation for the last
financial year stood at Rs 4290.12 crore, which met its expectations. However,
this reduction in NPAs through cash recovery and upgradation was over 32% less
than that of FY17.
Commenting on major
focus areas of Uco Bank in its latest annual report, RK Takkar, MD & CEO,
said: “The bank expects to recover a major amount in NPAs through NCLT
resolution.” The lender has exposures to nine of the 12 large stressed accounts
identified by the Reserve Bank of India (RBI) last year to
get resolved under the Insolvency and Bankruptcy Code (IBC). The bank’s overall
exposure to these nine accounts is around Rs 4,300 crore.
“We are looking to
recover over Rs 4,000 crore in this fiscal (FY18) through cash recovery and
upgradation,” Takkar had told FE in an interview earlier. He had said, for the
turnaround, the bank was betting on recovery of stressed assets. RBI had
initiated a prompt corrective action (PCA) against it in May last year in view
of high non-performing assets and negative return on assets (RoAs).
In the annual report
for the financial year 2017-18, Uco Bank said its recovery mechanism was geared
up at all levels of the organisation. “Accounts eligible for NCLT are being
explored vigorously. Bank closely remained in touch with other
lenders/operational creditors, on regular basis, for discussion on way forward
in respect of filing NCLT cases.
Most of the accounts
under NCLT are consortium/multiple banking accounts, and are monitored for
resolution on case to case basis in consultation with leader of consortium
etc,” the bank said, adding, where it was leader of the consortium, it was
meticulously following up each account for resolution.
“Recovery in loss
assets has a direct impact on the profitability and the bank is giving priority
in monitoring follow-up for recovery in such accounts. A separate vertical in
the bank is monitoring consistently for recovery in loss assets including
technically as well as prudentially written-off accounts,” it added.
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