UCO Bank is looking to sell non-performing assets (NPAs) worth Rs 3000 crore to asset reconstruction companies. The process for same has started and is expected to be completed by end of FY17, said Ravi Krishan Takkar, MD & CEO of UCO Bank.
Speaking to CNBC-TV18, he said NPA sale will help in profitability for the bank. The discount on sale will depend on case-to-case basis.
The management expects success rate of 50 percent of the Rs 3,000 crore in the sale process.
The assets put on block are from various sectors.
ARCs like to take stake in those accounts in which they have already bought in from other banks or institutions and want to consolidate. Or those accounts where some resolution is possible.
UCO Bank is hopeful of turning profitable in third quarter of FY18 on back of thinning losses.
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