Rs 15,000 crore is expected to be recovered from bad loan accounts during the current financial year, and a major chunk of this will come from accounts undergoing insolvency resolution process. Under this, Rs 10,000 crore is expected to be recovered from the accounts. National Company Law Tribunal ,NCLT) for resolution of bad loans in 2022-23, the bank said during an analysts’ conference last week after the June 2022-23 quarterly earnings announcement.

Responding to a query on recovery guidance for the full year 2022-23, Managing Director and Chief Executive Officer A Manimekhalai said: “The recovery will be around Rs 15,000 crore.”

In addition, the public sector lender is also likely to transfer some of the accounts under the newly incorporated Debt Resolution Company. narco,

A total of 44 bad loans have already been sanctioned by NCLT with a credit exposure of Rs 4,842 crore. 55 additional accounts approved by the Committee of Creditors (CoC) are awaiting the approval of the tribunal.

The 55 NPA accounts to be approved by the NCLT have a total investment of Rs 5,168 crore.

“So, around Rs 10,000 crore, which we should expect in this financial year, definitely it should come… and (in) NARCL also, another three-four months, we are going to move some good number of accounts. are expected,” the bank said in a transcript of analysts’ call.

National Asset Reconstruction Company Limited (NARCL) is an asset reconstruction company that was set up last year by various banks to consolidate and consolidate stressed assets for resolution.

During the first quarter ended June of the current financial year, the bank got only Rs 122 crore from the NCLT proposal.

The balance recovery was done through traditional methods such as sale of properties, one-time settlement and resolutions of Debt Recovery Tribunal (DRT).

It recovered Rs 1,481 crore and upgraded accounts worth Rs 1,212 crore during the quarter.

While the bank expects a fall of Rs 13,000 crore in FY13.

In the first quarter of FY23, the lender wrote off bad loans of around Rs 4,000-4,500 crore against corporate sector loans; Rs 1,400 crore against MSME lending and Rs 200 crore against retail loans.

The latest fall during the April-June quarter of the current fiscal was Rs 3,714 crore.

Union Bank reported 32 per cent growth in its net profit at Rs 1,558 crore for the quarter ended June 2022.

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