UCO Bank recovers Rs 900 crore from debt resolution under NCLT

KOLKATA: State-owned lender UCO Bank said it has recovered Rs 800-900 crore in the third quarter ending December by way of corporate debt resolution of four accounts under the bankruptcy law.

These four accounts are Ruchi Soya, Essar Steel, RattanIndia Power and Prayagraj Power.

UCO Managing Director AK Goel said that recovery from these accounts is complete.

This may help the bank reduce net losses in the third quarter while the bank is expecting to be back in black in the fourth quarter. The bank had reported net losses for the last 16 quarters.

UCO is still being under Reserve Bank of India’s prompt corrective action for high bad loan ratios and negative return on assets. Goel said the bank is committed to bring down net non-performing ratio to below 6% by March to get out of PCA.

Its gross NPA ratio was as high as 21.87% at the end of September last year even after improvement from 25.37% a year back. Net NPA ration improved to 7.32% from 11.97% in the same period.