CVC seeks report from Fin Min on United Bank's bad loans -Money Control
UBI's gross NPAs rose 188.3 percent to Rs 8,546 crore at the end of December 2013. It had Rs 2,963.8 crore of bad loans as on March 31, last year.
The Central Vigilance Commission (CVC) has sought a report from Finance Ministry on crisis- ridden United Bank of India for under reporting of its bad loans or Non Performing Assets (NPAs). The move comes on the basis of a complaint of alleged irregularities against the Kolkata-based bank. "
A factual report has been sought from Department of Financial Services (DFS) under Finance Ministry on a complaint against the Union Bank of India (UBI)," a senior CVC official said. UBI's gross NPAs rose 188.3 percent to Rs 8,546 crore at the end of December 2013. It had Rs 2,963.8 crore of bad loans as on March 31, last year.
As per rules, DFS has a maximum of 90 days to send the factual report to the anti-corruption watchdog. The Commission has already received a report on the matter from the bank's Chief Vigilance Officer (CVO), who acts as a distant arm of the CVC. There have been allegations that UBI's bad loans were not properly reported, the official said, adding that actual findings by the DFS will give a detailed understanding of the matter.
Amid administrative probe in the matter, the Finance Ministry has recently accepted UBI Chairman and Managing Director (CMD), Archana Bhargava's application for voluntary retirement . Bhargava, who took over as CMD on April 23, 2013, cited health ground for seeking premature retirement. Her term was due to end on February 28, next year.
It is learnt from sources that the Finance Ministry was putting in efforts to appoint a new CMD in the bank as early as possible. Sources said that it is probably after Bhargava's voluntary retirement that the Department of Personnel and Training (DoPT) had come out with a directive that no such request can be accepted if a probe is pending.
According to the new rules notified by the DoPT on February 27, it shall be open to the appropriate authority to withhold permission to a government servant if the he or she is under suspension or if a charge sheet has been issued and the disciplinary proceedings against him or her are pending. The DoPT said that the rules were revisited as per a 2010 judgment by the Central Administrative Tribunal.
United Bank stock price On March 28, 2014, United Bank of India closed at Rs 29.50, up Rs 1.60, or 5.73 percent. The 52-week high of the share was Rs 62.95 and the 52-week low was Rs 23.40. The latest book value of the company is Rs 94.89 per share. At current value, the price-to-book value of the company was 0.31.http://www.moneycontrol.com/news/business/cvc-seeks-reportfin-minunited-banks-bad-loans_1049982.html