Union Bank of India restructures loans worth Rs 15,927 crore under two recast schemes, majority in retail

Union Bank of India, the fourth largest public sector bank in the country, said on July 29 that it has so far restructured loans worth Rs 15,927 crore under the two resolution frameworks announced by the Reserve Bank of India.

A large chunk of the restructured accounts were from the retail segment, said Rajkiran Rai G, MD & CEO, Union Bank. Under resolution framework 1.0, the lender restructured accounts worth Rs 11,965 crore, of which Rs 3,702 crore were from the personal loans segment, Rs 2,427 crore was from the micro, small and medium enterprises (MSME) segment and Rs 5,836 crore were from large corporates.

Under resolution framework 2.0, the total recast amount was Rs 3,962 crore till June 30, 2021. The scheme is open for another three months. In the second round of recast, personal loans accounted for Rs 2,855 crore and Rs 954 crore came from MSMEs, while the rest was from agriculture. Large corporates were ineligible for recast under resolution framework 2.0, announced on May 5, 2021. The first resolution framework was issued on August 6, 2020, and applied to all categories of borrowers affected by Covid-related stress.

“We expect that retail and MSME put together, another Rs 2,000 crore of restructuring (may take place) in the second quarter,” Rai said.