Union Bank of India swung to a net profit of Rs 130 crore in the first quarter, against a net loss of Rs 2,583 crore in the preceding quarter.
But elevated slippages led to a deterioration in asset quality. Rajkiran Rai G, managing director & CEO of Union Bank of India said he expects slippages to moderate to Rs 2000-2500 crore over the next three quarters.
"The bank is sufficiently covered on NCLT exposure and expect resolution to be around Rs 3500 to 3600 crore," Rai said in an interview with CNBC-TV18 on Monday.
He said the bank has a credit growth target of 7-8 percent. "The low number on book is because of shrinkage in overseas book but the domestic credit book has grown by 12.5 percent," said Rai.
"The bank is not foreseeing any further slippage in power sector," added Rai. Currently, the lender have close to Rs 5,900 crore non performing assets (NPA), so all the accounts under stress are NPA recognised, he said.
First Published: Aug 13, 2018 12:12 PM IST