United Bank of India is on the top of the list of public sector lenders with maximum bad loans including restructured assets as a percentage of total advances. According to the data provided by the RBI, United Bank of India’s 21.5 per cent assets are either bad or non-performing assets (NPAs).
The other banks that have significant amount of gross NPAs and restructured loans as on March 2015 are
- Central Bank of India (21.30 per cent), Indian Overseas Bank (19.40 per cent)
- Punjab & Sind Bank (18.74 per cent)
- Punjab National Bank with 17.94 per cent
- State Bank of Patiala
- Allahabad Bank
- Oriental Bank of Commerce
- UCO Bank
- Dena Bank
The rising bad loans have been a major concern for the Reserve Bank of India. Most of the restructured loans are from the corporate sector. The top-30 defaulters are sitting on bad loans of Rs 93,769 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2,55,180 crore as on March 2015.
What can be done?
There are some kinds of restructuring which can be adopted.
- restructuring of advances extended to industrial units
- restructuring under Corporate Debt Restructuring
- restructuring of loans extended to MSME as per RBI guidelines.
About United Bank of India:
- founded: 1950
- headquarters: Kolkata
- CEO: P.srinivas
