The Reserve Bank of India (RBI) and the government discussed the Basel regulatory capital framework and bank's financial health under prompt corrective action (PCA) framework , among others, in its marathon 9-hour meeting on Monday.
United Bank of India is one of the banks under the PCA. Ashok Kumar Pradhan, MD and CEO of the bank, spoke to CNBC-TV18 about the RBI board meet outcome and PCA framework.
“It is not going to have much of the impact because today we are short of the basic capital requirement which we should be meeting in terms of the basel requirement. Unless until that part of the capital is infused into the bank, the bank will not be able to do the required amount of business which we intend to do in the next two-three quarters,” Pradhan said on Tuesday.
Talking about the bad loan situation at the bank, Pradhan said, “As of now my non-performing asset (NPA) percentage starts at around 14 percent so the way we are working, we are expecting certain resolutions to happen. We should be able to bring down our net NPA to below 9 percent by March 31, 2019. I am also expecting that we should be in profit in Q4 even though we have reported a loss for the last six quarters."
“I expect I should be out of NPA by Q2 of FY20,” said Pradhan.
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