United Bank of India (UBI) will take up a major loan recovery drive for reducing its non-performing assets (NPAs) by ₹2,000 crore by the end of this fiscal.
According to a review report, 30 branches of the bank account for 55.78 per cent of NPAs.
The gross NPAs for the first nine months of 2013-14 stood at about ₹8,546 crore, while net NPAs for the period stood at ₹5,630 crore.
At a meeting of its regional heads held on February 16, various measures such as a hike in base rate and reduction in interest rate on deposits were decided on to help the bank reduce its quantum of losses by end-March. The Kolkata-based lender reported a net loss of ₹1,238 crore in the third quarter ended December 31, 2013. Several cost-cutting measures have been proposed to improve the bottomline, the bank said in a release to the bourses.