United Bank of India does not expect any substantial hit in the next two quarters, said Ashok Kumar Pradhan, MD of the bank, adding that asset quality should see an improvement going forward.
The lender saw better profitability and stable asset quality in the second quarter while retail business saw good growth sequentially. “We have been able to contain the slippages on the retail front substantially backed by our recovery team,” said Pradhan.
“We did slip about Rs 1,040 crore. It was essentially backed by 2-3 accounts — Reliance Commercial Finance, Reliance Home Finance and IL&FS. We also have exposure to DHFL at about Rs 600 crore,” Pradhan told CNBC-TV18.
"Asset quality should substantially improve because I am expecting a resolution on Bhushan Power where we have about Rs 860 crore of exposure and Alok Industries at about Rs 700 crore odd. Together it’s Rs 1,600 crore and if these 2 resolutions do happen then asset quality will substantially improve," he added.
On NPAs, he said, “Today it's Rs 11,500 crore... I am targeting to reach the gross NPA number by about Rs 8,000-9,000 crore by the end of this financial year."
On the loan growth front, he said, “For the last one-and-a-half year we are focusing on retail, agriculture and MSME and these segments we are growing about 14 percent. I have a target of up to 20 percent plus this financial year.”