UBI will act under Insolvency Act to recover dues

COIMBATORE: With gross non-performing assets ( NPA) registering at 15.8 per cent, United Bank of India is contemplating to initiate and act under Insolvency Act to recover the dues, a top Bank official said today.

A huge chunk of NPA comes under Consortium Category, pertaining to corporate sector, UBI Managing Director and CEO, Pawan Bajaj told reporters on the sidelines of inaugurating bank's 2018th branch, here.

"Our share in consortium lending is about 3 per cent. We are looking to enhance the share to 10 per cent, so we have a say in it," Bajaj said.

On the impact of demonetisation, Bajaj said CASA shot up from 42.8 per cent to 48.3 per cent and deposits increased by Rs 10,500 crore.

The bank would add another 35 branches during this fiscal.

Bajaj, who had participated in a Tea Conclave at nearby Coonoor in Nilgiris district yesterday, said that the response from the sector was very good.

Stating that the bank's exposure to the tea sector stood at Rs 1,000 crore.