Finance Ministry to discuss UBI crisis with Reserve Bank of India (RBI).
The Ministry of Finance, Government of India will discuss the crisis about the Kolkata-headquartered United Bank of India (UBI) with RBI Governor Raghuram Rajan on Friday. Finance Minister P Chidambaram also categorically said he does not think any other bank is in the same boat as UBI. “United Bank’s NPAs (non-performing assets) or bad debts is not an alarming case. The bank has managed to reduce its NPA by ₹1,200 crore in January and February,” Chidambaram said in a press conference in New Delhi.
It may be recalled that the bank reported gross NPAs of ₹8,545 crore in the October-December quarter of 2013-14 as against ₹2,902 crore in the corresponding period of the previous financial year.
After the announcement, the bank’s Chairperson and Managing Director Archana Bhargawa took voluntary retirement, which was accepted with effect from February 20. The bank reported a net loss of ₹1,238 crore in the third quarter ended December 31, 2013, against a net profit of ₹42 crore in the corresponding period of the previous fiscal.