UCO Bank has Rs 7,500 cr exposure in identified stressed accounts

Kolkata, Aug 30 (IANS) State-run UCO Bank on Wednesday said it has Rs 4,500 crore exposure in the identified 12 large non-performing accounts and additional Rs 3,000 crore in the second list of 21 stressed accounts.

"In the initial list of 12 (companies or stressed accounts), we have exposure in nine accounts and the exposure would be Rs 4,500 crore...as far as the new list is concerned, our exposure would not be to that extent and it would be less - around Rs 3,000 crore," bank's MD and CEO R.K. Takkar told BTVi in an interview.

The Reserve Bank of India had identified 12 large accounts with exposure of more than Rs 5,000 crore and more than 60 per cent of which is recognised as NPAs (non performing assets). Banks were asked to refer to the Insolvency and Bankruptcy Code (IBC) for these accounts. Subsequently, the apex bank identified next set of 21 stressed accounts for initiating insolvency process.

According to Takkar, the apex bank has given time up to December 13,to find a normal resolution and the lenders were directed to take companies to National Company Law Tribunal if the normal resolution fails.

He said the banks which have been provisioning for bad loans will have to make additional provisions for stressed accounts coming in the new list.

"Most of the debt exposure to 1st and 2nd list companies are recognised NPAs," he said.

Takkar pointed out there is a need to work fast on resolution process as little time is left.

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