UCO Bank yet to undertake asset quality study, cites SC order for delay
Kolkata. State-owned UCO Bank has not Been able to make an analytical study of its asset quality even after the end of the loan repayment moratorium period on August 31, heeding a Supreme Court directive that no accounts shall be downgraded for now, an official said. On September 3, in a relief to stressed borrowers who are facing hardship due to adverse impact of the COVID-19 pandemic, the top court had said that accounts which were not declared as non-performing assets till August 31 this year, shall not be declared NPA till further orders.
The apex court had also earlier expressed its reservation over the idea of ‘charging interest on interest’ from those borrowers who were willing to avail of the loan repayment moratorium, a facility extended by the Reserve Bank of India during the pandemic times. UCO Bank MD and CEO A K Goel had earlier said the lender would like to ascertain its asset quality, once the moratorium period ceases on August 31. “We are not able to carry out that exercise as the apex court has directed that no accounts will be downgraded till further orders”, Goel told PTI.