Under Reported NPAs

Demand for bank finance is weak, interest rates are high and growth is slow Many lenders not willing to expand but UBI is exception United Banks sticky loans jumped from Rs.4,001 crore to Rs.8,546 crore Banks CAR Crashed to 9.01% just above than 9% which is mandatory Bank blamed finacle for mounting NPAs

CMD Resigned as crisis boils over

Short Stint of about 10 months During which bank saw mounting losses, credit quality worsening and capital adequacy depleting Rift between CMD and other senior executives over classification of NPA

Action Required
Concerns regarding governance, decision making, credit appraisal and human resources at state-run banks Intensive drive to recover at least Rs.2,000 crore of NPAs in the March quarter Bank to present and implement capital restoration plan Restrict expansion of risk-weighted assets Not allowed to enter new business Barred from accessing high-cost deposits and no dividend payment