Uco Bank launches compromise scheme

The public sector Uco Bank has introduced a compromise scheme for the defaulting small borrowers having outstanding less than Rs 25,000 in Orissa.

As per the scheme, those loans which have been declared as non-performing assets (NPAs), can be settled by paying 10 to 50 percent of the outstanding amount.

The compromise amount will depend on the period for which the account was in non-performing stage, N Sambasiva Rao, zonal manager (Bhubaneswar zone), Uco Bank said.

Addressing the media, he said, Uco Bank has 184 branches and three zones in the state. Out of it, 68 branches come under the administrative control of Bhubaneswar zone. About 4013 NPA account holders with a loan outstanding of Rs 3.94 crore can avail the benefit of the scheme. The scheme will remain operational till the end of March 2009.

He said, the zone has 68 branches out of which 28 branches have already migrated to core banking solutions (CBS) platform. The remaining branches will migrate to the new platform before March 2010. While real time gross settlement (RTGS) facility is available in 14 branches of the zone, it is in the process of adding one more branch in Raygada before the end of the current fiscal.

About the business achievement, Sambasiva Rao said, the total business target for the zone was Rs 3672 crore by March 2009. It has already reached a business of Rs 3132 crore and sees no difficulty in achieving the target.

During the current fiscal, the zone provided loans amounting to Rs 1080 crore by February 6 including Rs 108 crore to the small and medium enterprises in the state. The advances to the agriculture sector were Rs 360 crore which is about 33.33 percent of the total advances given by the bank during the current fiscal.