With Uco BankBSE -0.61 % facing severe stress in terms of crucial banking parameters, its employees associations have vowed to play catalyst in the bank's turnaround plan and urged their members to work harder.
Trade unions, dubbed as disruptive by the management for years, appear to have realised that it may be now or never for the loss making bank to survive. Uco Bank has made net losses for the eight consecutive quarters with one-fifth of its loans turning sticky.
The leaders told employees to take "some extra efforts" especially in the fields of loan recovery, low cost deposits mobilization and customer acquisition. They have decided to "adopt" branches which are under performers and guide them to the path of team work.
"We need special efforts to ensure that the bank turns around and all the employees and officers are motivated enough to walk extra miles to revive the bank and survive in the competition," said Partha Chanda, deputy general secretary of All India Uco Bank Employees Federation.
"We need special efforts to ensure that the bank turns around and all the employees and officers are motivated enough to walk extra miles to revive the bank and survive in the competition," said Partha Chanda, deputy general secretary of All India Uco Bank Employees Federation.
The bank celebrated its platinum Jubilee on January 6 while the unions observed a "re-dedication week" across the country. The fractions of the Uco unions have formed a united forum to take this effort forward.
"We the employees of Uco Bank have huge task, tough challenges and heavy responsibilities of working together to place our bank to its prime position," said S Roy Choudhury, convenor of the joint forum
general secretary of All India Uco Bank Employees Federation.
Reserve Bank of India placed Uco Bank under its prompt correction action plan in June last year and put restrictions on lending, branch expansion and distribution of profit among shareholders. The bank reported Rs 1286 crore of net losses for the first half of this fiscal while its gross non performing (NPA) ratio slipped to 19.7%.
IDBI Bank has the highest NPA ratio at 24.9%, while United Bank of India has it at 18.8% and Central Bank of India at 17.2%.
Rating company ICRA had said in June that Uco bank would need Rs 3,000-4,300 crore of tier 1 capital in the FY2018 and FY2019 to cover the net losses.
The bank's board last week approved a proposal to raise Rs 1375 crore from the government by issuing equity shares on preferential basis. The government holds 80.5% in the bank.
Reserve Bank of India placed Uco Bank under its prompt correction action plan in June last year and put restrictions on lending, branch expansion and distribution of profit among shareholders. The bank reported Rs 1286 crore of net losses for the first half of this fiscal while its gross non performing (NPA) ratio slipped to 19.7%.
IDBI Bank has the highest NPA ratio at 24.9%, while United Bank of India has it at 18.8% and Central Bank of India at 17.2%.
Rating company ICRA had said in June that Uco bank would need Rs 3,000-4,300 crore of tier 1 capital in the FY2018 and FY2019 to cover the net losses.
The bank's board last week approved a proposal to raise Rs 1375 crore from the government by issuing equity shares on preferential basis. The government holds 80.5% in the bank.
No comments:
Post a Comment