RBI: Ensure Corporate Governance In Public Sector Banks


KOLKATA: Reserve Bank of India has written to the government to ensure corporate governance in public sector banks in the light of what happened in United Bank of India.

BankThe Kolkata-based UBI was in a midst of a crisis last couple of months after its sticky loans rose to 11 per cent of total loans while its management was seen fighting over the classification of loans. The sudden resignation of UBI chairperson Archana Bhargava raised eyebrows too.

“It was a corporate governance issue. It’s not only UBI, many other banks face such issues,” deputy governor KC Chakrabarty said.

The government is the majority shareholders in UBI and other public sector banks.

UBI’s gross non performing assets rose nearly three times to Rs 8546 crore at the end of December 2013 from Rs 2,902 crore a year ago. Gross NPA was Rs 6286 crore at the end of September.

The gross NPA ratio jumped to 10.82 per cent , the worst in the industry, from 7.52 per cent at the end of the previous quarter and from 4.42 per cent a year ago.

Please follow and like us:



Previous articleHealthcare likely to be considered CSR activity
Next articleWe Prepare Business Leaders Who Care for People and Planet
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in