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Union Bank expects to recover ₹15,000 crore from bad loans

August 02, 2022

Union Bank expects to recover ₹15,000 crore from bad loans
Union Bank of India NSE 3.36 % expects to recover ₹15,000 crores from bad loan accounts during the current fiscal year, and a bulk of this would come from accounts undergoing the insolvency resolution process. It expects to make recoveries worth ₹10,000 crores from accounts under the National Company Law Tribunal (NCLT) for resolution of bad loans in 2022-23, the bank said during an analysts conference call post-June 2022-23 quarter earnings announcement last week. 

Replying to a question on recovery guidance for the  full year 2022-23, Managing Director and Chief Executive Officer A Manimekhalai said, “The recovery will be around ₹15,000 crores.” 

Besides, the public sector lender is also likely to shift a few accounts under the newly incorporated debt resolution company NARCL. 

A total of 44 bad loans have already been approved by the NCLT with a loan exposure of ₹4,842 crore. Additional 55 dud accounts cleared by the Committee of Creditors (CoCs) are awaiting approval from the tribunal. 

The 55 NPA accounts to be approved by NCLT have a total exposure of ₹5,168 crores. 

“So, almost around ₹10,000 crore which we should expect in this financial year, definitely it should come and (in) NARCL also, another three-four months, we are expecting some good number of accounts likely to be shifted,” the bank said in a transcript of the analysts call. 

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