Union financial institution: Union Bank expects to recover Rs 15,000 crore from unhealthy loans this financial year
In response to a question about the restoration direction for the full year 2022-23, Managing Director and Chief Executive Officer A Manimekhalai said, “The recovery will be around Rs 15,000 crore.”
Also, the general public sector lender may be more likely to transfer a few accounts under the newly integrated debt solution NARCL.
A total of 44 bad loans have already been cleared by the NCLT with a mortgage advertisement of Rs 4,842 crore. Another 55 overdue accounts cleared through the Creditors’ Committee (CoC) are awaiting court approval.
The 55 NPA accounts to be authorized through NCLT have a full advertisement of Rs 5,168 crore.
âSo close to around Rs 10,000 crore that we should be expecting in this financial year, that should definitely happenâ¦ and (in) NARCL as well, another three to four months, we expect quite a few of accounts are likely to be moved,” the financial institution mentioned in a transcript of the analyst’s name.
National Asset Reconstruction Company Limited (NARCL) is an asset reconstruction company organized through many banks last year to consolidate and consolidate wired assets for a solution.
In the first quarter ended June of this financial year, the financial institution won the top Rs 122 crore from the NCLT solution.
The rest of the restoration was through conventional modes equivalent to the sale of houses, a one-time deal, and Debt Recovery Tribunal (DRT) resolutions.
It recouped the price of Rs 1,481 crore throughout the quarter and the account price of Rs 1,212 crore was updated.
While the financial institution expects slippages at the level of Rs 13,000 crore in FY23.
During the first quarter of FY23, the lender wrote off unhealthy loans of around Rs 4,000-4,500 crore for corporate sector loans; Rs 1,400 crore for MSME borrowing and Rs 200 crore for retail lending.
The contemporaneous slippages throughout the April to June quarter of this financial year cost Rs 3,714 crore.
Union Bank recorded a 32 per cent expansion in its internet advantage to Rs 1,558 crore in the quarter ended June 2022.