In an interview to CNBC-TV18, Ravi Krishan Takkar, MD & CEO of UCO Bank spoke about how the sector overall is dealing with the aftermath of what has been a big fraud headline.
Takkar said that our Hong Kong branch discounted the bills under letter of credit (LCs) open by Punjab National Bank (PNB) in Mumbai. These LCs were issued on behalf of Gitanjali Group of companies.
He further said that we are sure that PNB would honour the commitment in these LCs.
Talking about Gitanjali’s default, he said in our case it’s not Letter of undertaking (LOU) its (LC). Therefore, in this case the liability is primarily on PNB.
“Gitanjali Group is only applicant from PNB point of view. The bills have started to fall in due for payment. We have lodge our claim with PNB and we are hopeful that things should be sorted out,” he added.
Talking about business, he said our main focus is on recovery which will affect the balance sheet.
He further mentioned that our major portion of non-performing assets (NPAs) are from corporate sector which are in National Company Law Tribunal (NCLT).
We expect bigger corporate accounts to get resolved in NCLT, he added
On profit front, he said we expect another 3-4 Quarters before reporting a net profit.
See an increase in provisions due to recent RBI norms, said Takkar.
For entire interview, watch accompanying video.
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