Public sector lender, United Bank of India has set a target of upgrading and recovering at least Rs 2,000 crore of bad loans by March 2014 as a turnaround strategy. The bank’s sticky loans have increased by 194.48% at Rs 8,546 crore in the nine month to December 31, 2014 as compared to Rs 2,902 crore in the year ago period. The bank is also taking several cost cutting measures to come out of the woods.
Recently, the Bank has reduced the Interest Rate in Deposit and increased the Base Rate in order to improve its bottom line. The bank had reduced interest rate in deposits over one year to 8.50% from 8.75% a year and increased base rate to 10.50% from 10.25% in order.
