Union Bank of India will offer non-performing assets (NPAs) worth Rs 7,800 crore to National Asset Reconstruction Company Ltd (NARCL), Rajkiran Rai G, MD & CEO, told CNBC-TV18.
The bank reported its earnings for the March-ended quarter. It has clocked in its best profit in five years boosted by lower provisions, also high write-offs aided asset quality this quarter.
Speaking in an interview with CNBC-TV18, Rai said, “Union Bank has about Rs 7,800 crore of NPAs, which can be offered to ARC, but subject to the formation of ARC and offer from ARC to buyout this book.”
“This year (FY21), our total recovery including recovery in write-off accounts was Rs 10,800. For the next year, our target is Rs 13,000 crore and out of that we are expecting Rs 4,000 crore from National Company Law Tribunal (NCLT) and Rs 9000 crore from non-NCLT cases,” he said.
On National ARC, Rai said, “The banks have taken steps to identify the potential accounts which can be offered to NARCL for buying. So ultimate buying will be decided by the NARCL management once it is formed. So preliminary discussion is going on.”
For the entire interview, watch the video.