UCO Bank likely to disburse Rs 4000 crore in next 45 days

UCO Bank

After making a recovery of Rs 800-900 crore from four stressed accounts, public sector lender UCO Bank is planning a “loan carnival” that will ensure disbursements of Rs 4,000 crore of retail and enterprise loans in the next 45 days.

“We are sitting on huge liquidity. The loan carnival will help us use this fund effectively,” AK Gorl, Managing Director, UCO Bank.

As per the reports, the lender has set a target of Rs 2700 crore retail loan disbursement according to the overall plan and focusing on home loans, car loans and gold loans to achieve this. The remaining Rs 1,300 crore will be lent to micro, small and medium enterprises (MSMEs).

“This exercise will also help us re-balance our portfolio,” executive director Ajay Vyas said.

As of now, 55 percent of the bank’s balance advances of around Rs 1.17 lakh crore are wholesale lending, which is expected to fall to 50 percent after March.

Goel said the lender is firm to trim its net non-performing ratio to less than 6 percent by March, from 7.3l2 percent by the end of September last year, to come out of the Reserve Bank of India’s prompt corrective action (PCA) framework.

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