RBI eases lending restrictions on United Bank

Fifteen months after imposing lending restrictions on United Bank of India for high NPAs, Reserve Bank has relaxed the rules subject to certain conditions, the state-run lender said today.
"The RBI has relaxed the Prompt Corrective Action restrictions imposed on United Bank of India on sanction of advances, participation in restructuring proposals," it said in a filing to the exchanges.
It can be noted that the Kolkata-based lender was asked not to lend more than Rs 10 crore to a single borrower and also barred from participating in the restructuring stressed loans following a massive spike in bad loans in December 2013.

The gross non performing assets of the bank had touched over 10 per cent, which had led to the action.
In the exchange filing, United Bank of India said the RBI has informed it of the relaxation through a letter and there are certain conditions it has to adhere to like the capital adequacy remaining above 9.5 per cent, and the credit deposit ratio not to exceed 70 per cent.