Waiting for RBI policy review to decide on rate cut: D Sarkar, Union Bank

In an interview with ET Now, D Sarkar, CMD, Union Bank of India, talks about the asset quality concern and their restructuring plans. Excerpts:

ET Now: Asset quality is the biggest concern for most PSU banks at this moment. What sectors are causing stress and what is the NPA picture?

D Sarkar: Stress is not on the specific sectors but mostly it is on the power sector, steel sector, infra sector, and hospitality sector because of the late monsoon agriculture also started doing well a little later. So it is not on the specific sector as such, but overall stress is there. As far as our bank is concerned, we are taking all positive steps from April onwards and things are moving around. So hopefully we will be able to fight effectively with NPAs and get the best possible result.

ET Now: What is the restructuring pipeline looking like and how much further restructuring can we expect?

D Sarkar: No big restructuring in the September quarter, but as far as the pipeline is concerned, maybe around 2000 to 2200-2300 crore is in the pipeline. But at this moment, big accounts are not coming. We are thinking about restructuring in a very positive way. Delayed revenue generations, a little bit problem in the input supply or linkage might be the reasons for restructuring.

ET Now: Any cuts in the deposit or lending rates and how have your cost fund performed?

D Sarkar: The RBI will be doing its credit policy review on December 18th. If some rate cut is there, we will be passing that on.

ET Now: How much fund and fusion are you expecting from the government?

D Sarkar: We have applied for about 950 crore and when we had the last meeting with the finance minister on 15th of this month, we were indicated by the ministry that there would be active consideration and maybe that will be getting us good news at the earliest possible time.