NEW DELHI: Punjab & Sind Bank executive director Mukesh Kumar Jain tipped to be moving to Kolkata as the new chairman and managing director of United Bank of India.
Although various candidates have been considered for the job, Jain is seen as the frontrunner and the finance ministry is expected to start the process soon.
Th only thing going against him is a relatively short tenure, said a source.
Govt to name expert directors to help steady United Bank of India ship
The government will revamp the senior management of the crisis-ridden United Bank of India (UBI) by appointing experts who are willing to take up the challenge and try effecting a turnaround to its board, reports Arun S in New Delhi. This follows the RBI’s audit report which found “serious governance failures” at UBI and noted that the management and board “did not perform and deliver results as expected”.
A forensic audit report by Deloitte India had found fault with the bank’s early warning system to detect risks as well as inefficiency of its staff which resulted in a rise in NPAs — there was a surprisingly sharp jump in NPAs, across segments, including retail, in the July-September period. The Deloitte report, it is learnt, had found the bank deliberately under-reported its NPAs in the past. The RBI is understood to have suggested the board of the bank be superseded.
United Bank of India to put Rs 700 crore non-performing assets on sale-DNA
Some assets of Zoom Developers, which had gone bust after taking Rs 3,000 crore from the banking sector, would be sold next month.
United Bank of India (UBoI) is actively pursuing disposing off its non-performing assets in a desperate attempt to salvage some revenues from its mounting recoverables in addition to efforts being taken at the behest of the finance ministry to recover some of its bad loans.
Close to Rs 700 crore of NPAs are being planned to be put up for sale while some assets of Zoom Developers, which had gone bust after taking Rs 3,000 crore from the banking sector, would be sold next month, dna has learnt.
In fact, processes are currently on to sell NPAs to asset reconstruction companies and a final decision of the bank on accepting bids by them would be taken by March 15.
Then, on March 20, UBoI would undertake an e-auction through MSTC Ltd to dispose off some of the assets of beleaguered real estate company Zoom Developers including 900 sq meters of land at Marol Industrial Area in Andheri (East) and 75,788 sq feet at various places at Indore.
Zoom Developers collectively owes Rs 3,002 crore to the banking sector.
These apart assets worth Rs 5.75 crore in Delhi and Ahmedabad would be put up for sale, officials said.
Currently, the finance ministry is monitoring recovery of NPAs on a daily basis, with SMSes being sent out at the end of the working hours by the bank's top officials to the ministry.
Till now recovery worth Rs 1,781 crore has been made during the current financial year, UBoI officials said.
The finance ministry is currently awaiting an administrative inquiry as to why UBoI's NPAs suddenly shot up during the current financial year -- from 4.2% to 16.4% at the net level over the second and third quarters.
Another report, a forensic audit carried out by consultancy firm Deloitte, has already been submitted.
UBoI is currently headless with chairperson and managing director Archana Bhargava opting for sudden voluntary retirement on February 20 and the day-to-day management being looked after by two executive directors, Deepak Narang and Sanjay Arya.
An option to supersede UBoI's board as suggested by the Reserve Bank of India (RBI) was also considered but didn't find favour with the finance ministry.
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