UNITED Bank of India has the rare distinction as the public sector lender with maximum bad loans including restructured assets as a percentage of total advances.
United Bank of India's 21.5 percent assets are either bad or have been restructured to save them from turning non-performing assets (NPAs), shows data provided...by the Reserve Bank of India (RBI) to the Finance Ministry.
Central Bank of India (21.30 per cent), Indian Overseas Bank (19.40 per cent), Punjab & Sind Bank (18.74 per cent) and Punjab National Bank (17.94 per cent) are other PSU banks with bad loans as of March 2015.
State Bank of Patiala, Allahabad Bank, Oriental Bank of Commerce, UCO Bank and Dena Bank all have bad and restructured loans in excess of 15 per cent.
The growing bad loans have been a major concern for the RBI as well as the government and steps are being taken to deal with it.
The top 30 defaulters are sitting on bad loans of Rs 93,769 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2,55,180 crore as of March 2015.
There is four kinds of restructuring. The first and foremost is restructuring of advances extended to industrial units, restructuring under CDR (corporate debt restructuring) and restructuring of loans extended to MSME, according to RBI guidelines.