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Union Bank to sell 8 NAP accounts worth ₹3,000cr to NARCL
July 24, 2023
Union Bank of India on Friday said it has identified eight troubled accounts worth ₹3,000 crores to be sold to the national bad bank NARCL this fiscal. The lender has more than doubled its net income at ₹3,236 crore in the June 2023 quarter on improved asset quality and recoveries.
The city-based bank had already sold three accounts worth ₹900 crore last fiscal to the national bad bank at a recovery of 33 percent.
We have sort of identified as many as 42 troubled accounts with an outstanding of ₹10,000 crore to be sold to the National Asset Reconstruction Company (NARCL). Of these, we hope to sell at least eight of them to that central government-owned bad bank this fiscal, A Manimekhalai, the chief executive and managing director of the public sector lender, told reporters at the bank’s post-earnings presser here.
Union Bank was one of the first lenders to sell its NPAs to NARCL in the first lot of the bad bank’s such transactions.
The bank had recovered ₹20,000 crore from written-offs/upgrades or one-time settlements but this year it will be around a quarter of that only, she said as the overall quantum of bad assets has fallen drastically.
Of the ₹20,000 crore, cash recovery alone was ₹5,500 crore, which it expects to fall to ₹4,500 crore this year.
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