Uco Bank to clean up balance sheet

Kolkata-based Uco Bank has put some Rs 264-crore of nonperforming assets (NPAs) on the block to clean up its balance sheet. This was indicated by Uco Bank chairman & managing director SK Goel. Out of this, around Rs 100 crore of bad loans are likely to be sold off by March 31. Overall, Uco Bank is struggling with bad loans totalling Rs 1,664 crore. “NPAs with a minimum size of Rs 5 crore have been identified for putting on the block,” Mr Goel said. “The bank has recently finalised deals to transfer NPAs to the tune of Rs 44 crore to a few to asset reconstruction companies (ARCs). Negotiations are on for selling off another Rs 60-70 crore of NPAs this fiscal. Talks are at an advanced stage,” Mr Goel said. It is understood that companies like Asset Reconstruction Company (India) Ltd (Arcil), Arsec India Ltd, Pegasus Asset Reconstruction Co have evinced an interest for taking over part of Uco’s bad loan portfolio. This selling off exercise would help the bank. Out of the total NPA, Rs 400 crore is in the agriculture sector and another Rs 450 crore is in the retail segment. It has identified nearly 1.80 lakh bad loan accounts, including nearly 1.44 lakh small accounts. Besides transferring bad loans to ARCs, it has also started negotiating with default borrowers directly to recover bad loans. It has recovered some Rs 213 crore during the first half to September 30, 2007. It is looking to recover another Rs 300 crore by March 30, 2008.