Union Bank of India stops fresh loans to troubled sectors

Moneycontrol Bureau

Public sector lender Union Bank of India (UBI) is tightening its belt to check the rise of non-performing assets. According to S S Mundra, executive director of the bank, it has stopped lending to troubled sectors like power, aviation, and commercial real estate in the last 6-7 months. The bank has recently set up a pilot collection centre for recovery of loans in Bangalore. It has appointed two general mangers who are overseeing recovery process, categorised into parts: ticket sizes of below Rs 10 lakh and above Rs 10 lakh.