Zee Business Exclusive: Big relief after coming out of RBI’s PCA; business to improve significantly: UCO Bank MD & CEO

State-run UCO Bank Limited is now out of the Reserve Bank of India’s (RBI) Prompt Corrective Action Framework (PCA) and is relieved to have come out of it. In chat with Zee Business, Managing Director (MD) and Chief Executive Officer (CEO) of bank Atul Kumar Goyal tells what it means for it and where is the bank headed to

The MD and CEO has expressed bank’s focus on bringing its business to the pre-Covid-19 levels

State-run UCO Bank Limited is now out of the Reserve Bank of India’s (RBI) Prompt Corrective Action Framework (PCA) and is relieved to have come out of it. In chat with Zee Business, Managing Director (MD) and Chief Executive Officer (CEO) of bank Atul Kumar Goyal tells what it means for it and where is the bank headed to.

The MD and CEO has expressed bank’s focus on bringing its business to the pre-Covid-19 levels. He said that the banking business is now going to see significant improvement. He said that the PCA tag had created a lot of restrictions for the bank, adding that the bank was unable to process unsecured loans and there were issues of rating.

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#ZbizExclusive | #PCA से बाहर निकलने से यूको बैंक को
राहत...#UCOBank को जल्द हालात सुधरने की उम्मीद...

देखिए यूको बैंक के MD & CEO अतुल कुमार गोयल से सौरभ पांडे
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He said that the business will see significant uptick now having being removed from the PCA.

UCO Bank has seen a credit growth of 5-6 per cent year-on-year (yoy) in the quarter ended 30 September 2021, Goyal said. The PSB had announced its Q2FY22 results recently.

He said that the business has been impacted from the onslaught of the Covid-19 pandemic. However, it was on course to reach to the pre-pandemic levels, he assured.

As the impact has come down drastically, the bank is expected to register a yoy growth of 10 per cent by 31 March 2022.

On the issue of bank’s gross Non-Performing Assets (NPAs), Goyal said that the NPA was around 27 per cent if one looked at a period 2-3 years prior of now. It has come down to 8.98 now, he said.

Net NPA was around 12 per cent which has now come down to 3.37 per cent, Goyal said. Meanwhile, the provision covering ratio has climbed to 90 per cent now, the MD & CEO further said.

The bank is now under much better state. The bank has been able to completely transform itself over the last three years with focus and investment on digital banking.

On the recent draft published by government think tank NITI Aayog on digital banking, Goyal said that it was for the betterment of the banking sector. He said that digitization was the way forward and without it, the business would not sustain.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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