UCO Bank Recovers Rs.800-900 Crore to Revamp Fraud-Hit Balance Sheet

State-owned lender UCO Bank has recovered Rs. 800-900 crores from its four stressed accounts during December quarter of Fiscal Year 2019-20, said UCO BANK MD and CEO, Mr. A K Goel. The Bank is switching to recovery mode after its former MD Arun Kaul was booked for siphoning loans worth Rs. 6.21 billion.

Crux of the Matter
  • The fraud-hit bank recovered stressed loans from RattanIndia Power Ltd., Essar steel, Ruchi Soya Industries Ltd. and Prayagraj Power.
  • With the help of the Corporate Insolvency Resolution Process (CIRP) UCO Bank manages will recover money from Essar Steel and Ruchi Soya.
  • The resolution process of the remaining two companies, RattanIndia Power and Prayagraj Power Generation has been executed under RBI’s Prudential Framework for Resolution of Stressed Assets. A lump-sum payment of Rs 6,574 crore from RattanIndia will help the bank to reduce its bad loans further.
  • Bank MD and CEO, Mr. A K Goel stated that to rebalance the current loan portfolio, UCO Bank has announced ‘Loan Carnival‘ from January 6.
  • As a part of that, it will disburse Rs. 2700 crore retail loans, and Rs. 1300 crore MSME loans.
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