State-owned lender UCO Bank has recovered Rs. 800-900 crores from its four stressed accounts during December quarter of Fiscal Year 2019-20, said UCO BANK MD and CEO, Mr. A K Goel. The Bank is switching to recovery mode after its former MD Arun Kaul was booked for siphoning loans worth Rs. 6.21 billion.
Crux of the Matter
The fraud-hit bank recovered stressed loans from RattanIndia Power Ltd., Essar steel, Ruchi Soya Industries Ltd. and Prayagraj Power.
With the help of the Corporate Insolvency Resolution Process (CIRP) UCO Bank manages will recover money from Essar Steel and Ruchi Soya.
The resolution process of the remaining two companies, RattanIndia Power and Prayagraj Power Generation has been executed under RBI’s Prudential Framework for Resolution of Stressed Assets. A lump-sum payment of Rs 6,574 crore from RattanIndia will help the bank to reduce its bad loans further.
Bank MD and CEO, Mr. A K Goel stated that to rebalance the current loan portfolio, UCO Bank has announced ‘Loan Carnival‘ from January 6.
As a part of that, it will disburse Rs. 2700 crore retail loans, and Rs. 1300 crore MSME loans.
Curiopedia
National Company Law Tribunal(NCLT) is established by the Supreme Court to order to handle the laws regarding the companies. National company law tribunal is a quasi-judicial body in India. More Info Insolvency and Bankruptcy Code (IBC) has been a big sigh of relief for MSMEs. It is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. It would ensure faster debt recovery or liquidation process. The IBC Law was brought about with the objective to ensure that ease of doing business greatly improves in India. More Info
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