Back

Analyst Meet / AGM - Analyst Meet

Plans to contain GNPA ratio below 4%

Union Bank of India

01-Aug-2014, 01:16
Union Bank of India conducted the analyst meet on 01 August 2014 to discuss financial performance for the quarter ended June 2014 and the prospects of the bank. Arun Tiwari, Chairman and Managing Director of the Bank addressed the meet:
Highlights:

Bank has been rebalancing its balance sheet. The repricing of the deposits is taking place at lower rates only. Meanwhile, on assets side, the retail, agriculture and MSME (RAM) is contributing 60% of the incremental credit growth.
Bank proposes to improve NIM to 3.0% by Q4FY2015.
The core fee income as percentage of total assets is targeted to improve by 15-20 bps.
Bank proposes to resolve bad loans issues at the earliest.
Bank plans to have the Capital Adequacy buffer of 100-150 bps over regulatory requirement.
CRAR would be 28 bps higher after adding back the profit for Q1FY2015.
Bank has targeted the advances growth of 10-12% and deposits growth at 9-10% for FY2015.
CASA ratio is proposed to be improved to 31% by end March 2015.
Bank plans to contain the GNPA ratio below 4% at end March 2015.
Bank does not expect significant restructuring of advances, going forward.
Bank sold about Rs 440 crore stressed loans to asset reconstruction companies (ARCs) in Q1FY2015. The outstanding securities receipts book of the bank stands at Rs 485 crore. Bank is not aggressive on selling stressed loans to ARCs.
The written off accounts book of the bank stands above Rs 3000 crore, which is backed by good collaterals.