State-owned, United Bank of India is negotiating with a clutch of asset reconstruction companies to sell a part of its bad loans with a view to clean up its loan book, a top bank official said.
The Kolkata-based bank plans to sell off Rs 100-crore of its bad loans by end-March and has already sold Rs 200-crore worth bad assets so far in this fiscal, United Bank of India, Executive Director, T M Bhasin said.
"We have received bids from ARCs to sell our bad assets. We are presently evaluating these bids and expect to sell Rs 100 crore worth bad loans by the end of this month," Bhasin told reporters here at the bank's listing ceremony.
The decision to sell off its bad loans is part of restructuring its advance portfolio and also reduces the non performing assets burden, Bhasin said, without detailing further on which segments have generated the bad loans most.
Presently, UBI has a gross NPA level of 2.4 per cent, while its net NPAs stands at 1.21 per cent. This is slightly higher as compared to many of its peer players.
United Bank currently has a loan book of Rs 43,000 crore, while its total deposit-base stands at around Rs 67,000 crore.