Extra provisioning for restructured a/cs not a concern: UCO Bk

Extra provisioning for restructured a/cs not a concern: UCO Bk Kolkata: The RBI's move to mandate extra provisioning on restructured standard accounts is not a matter of any major concern for UCO Bank, a top official said.

During the second quarter monetary policy review, the Reserve Bank had raised the provision for restructured standard accounts from 2 percent to 2.75 percent.

"It is not matter of any major concern as the guidelines are not retrospective and applicable from this quarter (October-December 2012)," UCO Bank Executive Director S Chandrasekharan said.

Chandrasekharan did not reveal details about possible slippage or restructuring during the December 2012 quarter.

It was earlier reported that in the second quarter (Q2), the slippage for UCO Bank on Sterling Biotech as a group was Rs 820 crore out of total Rs 1,500 crore.

A source in the bank said now if Sterling Biotech as a group, opts for restructuring then it would have some impact on additional provisioning for UCO Bank.

Meanwhile, Chandrasekharan said the bank expected gross Non-Performing Assets (NPA), which remained close to 4.88 percent till the Q2 period ended September 2012, was unlikely to deteriorate much though the pressure on power and steel sector remained.

Provisions for non-performing assets nearly doubled in the Q2 period from a year ago to Rs 435 crore as gross bad loan rose.

Meanwhile, UCO Bank which aims to cross the Rs 3 lakh crore business mark said it remained confident on 20 percent growth for the 2012-13 fiscal.

The bank had also sought Rs 800 crore from the government as recapitalisation support to prevent its tier-I capital going below eight percent.

PTI