Public sector lender UCO bank on November 2, withdrew an earlier decision to distribute sweet packets to the top 10 NPA (Non-Performing Assets) borrowers of the bank this Diwali.
In the latest circular that Moneycontrol has reviewed; the bank said: "It is hereby advised that the instructions contained in the aforesaid communication stand withdrawn."
Earlier in the circular of November 1, which Moneycontrol reviewed, UCO Bank said: "The top management has suggested for distribution of sweet packet to top 10 NPA borrowers of each branch, in line with peer PSBs like any other valued customers, where branch heads need to personally meet them, greet them on the occasion of Diwali and distribute them a sweet packet.
"Zonal heads are also advised to personally meet and greet the top 10 NPA borrowers of the zones on the auspicious occasion of Diwali, " added the Kotlkata-based bank's circular.
In the previous circular, the bank said that proper connect with such customers may bridge the gap created between them and the bank. Such activity may also create a satiation of empathy and harmony compelling some of the borrowers to come forward to set their account with the bank.
UCO bank will publish its Q2FY24 results on November 3, 2023. It reported an 81 percent jump in net profit at Rs 223.48 crore in the June quarter of the current financial year 2023-2024. The Kolkata-headquartered bank reported a net profit of Rs 123.61 crore in the year-ago period.
The bank's gross non-performing assets (GNPAs) declined to 4.48 percent from 7.42 percent in the June quarter of the previous fiscal. Net non-performing assets (NNPAs) fell to 1.18 percent from 2.49 percent. Net Interest Income (NII) increased by 21.78 percent to Rs.2008.80 crore in Q1FY24 as against Rs.1649.54 crore for Q1FY23.
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