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Aim to bring down gross NPA to 15% in FY18: UCO Bank

In an interview to CNBC-TV18, Ravi Krishan Takkar, MD & CEO of UCO Bank spoke about the latest happenings in his organisation.

May 15, 2017 / 12:19 PM IST

The Reserve Bank of India intervenes to restrict UCO Bank's business going ahead with regard to loan growth and branch expansion after the bank reported losses for two consecutive fiscals.

In an interview to CNBC-TV18, Ravi Krishan Takkar, MD & CEO of UCO Bank spoke about the latest happenings in his organisation.

Below is the verbatim transcript of the interview.

Sonia: Can you give us some update on what the non-performing asset (NPA) situation could be over the next couple of quarters because gross NPAs of 17 percent plus is something that has worried the street for a long time.

A: No doubt that our gross NPAs are high at 17.12 percent and one of the reasons for this is that the balance sheet has not expanded. Therefore, a conscious decision was taken by the management to degrowth on account of various factors. Therefore, it's a matter of concern and we are trying to work out a resolution because majority of these NPAs are related to the corporate sector and most of them are under consortium arrangement. So we have been trying, wherever we are a lead bank or otherwise, to work out a resolution but unfortunately no strategic debt restructuring (SDR) or Scheme for Sustainable Structuring of Stressed Assets (S4A) has been successful. So with this insolvency code and new ordinance we are under Joint Lenders Forum (JLF), all the banks mandatorily have to participate with no condition etc. I think, things should start moving on corporate segment and once things start happening on corporate segment, I am sure we will be able to bring down these gross NPAs within this year to 15 percent.

For entire interview, watch accompanying video.

first published: May 15, 2017 12:18 pm

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