Union Bank of India eyes recoveries worth Rs 16,000 crore in FY24

Union Bank of India expects recoveries worth Rs 16,000 crore from the pool of stressed assets in the current financial year (FY24). It pegged slippages to Rs 12,000 crore for FY24.

A Manimekhalai, its managing director and chief executive said the bank is working to bring down Gross Non-Performing Assets (NPAs) to six per cent by March 2024. Mumbai-based public sector lender’s GNPAs stood at 7.34 per cent at end of June 2023 (Q1FY24)

Bank recovered Rs 3,564 crore in Q1FY24 while slippages were about Rs 3,241 crore in the reporting quarter, the CEO said addressing the post results (Q1FY24) press meet.

There was one large account with exposure of Rs 1,200 crore which slipped into the stressed category.

During the quarter, it wrote-off NPAs of about Rs 1,700 crore. The stock of written-off loans was Rs 72,000 crore. Most of the recoveries would come from this pool of loans for which bank already made 100 per cent provisions in line with regulatory norms, bank executives said.  

Bank was actively considering resolution in five stressed accounts for Rs 3,000 crore.

Its Net NPAs declined to 1.58 per cent in June 2023 from 3.31 per cent a year ago. The provision coverage ratio (PCR) improved to 90.86 per cent in June 2023 from 84.75 per cent a year ago.