- Boost for Raghuram Rajan: RBI should hike rates more to tame inflation, says International Monetary FundForex reserves up $271 m; hit level seen at FY14 startInvestment demand unlikely to pick up in India, interest rates too high, says BofA-MLUnited Bank to close some loss-making branches
The Reserve Bank of India has written to the finance ministry recommending the superseding of the board of the troubled United Bank of India, among other solutions, reports Arun S in New Delhi. Confirming the letter, financial services secretary Rajiv Takru told FE: Superceding the board is an administrative alternative that the RBI has suggested. But we are waiting for the inquiry report, which we should get soon. If someone on the board is found guilty, Takru added, the question of supersession would be looked at.
While merging UBI with another bank is a possibility, ministry sources said it was not high on the agenda at the moment. These options, sources said, were politically sensitive and would be employed only as a last resort in an election year. Zonal managers of UBI have been given NPA-reduction targets and told to submit daily reports to the two executive directors on this. From Rs 2,902 crore in December 2012, UBIs NPAs rose to Rs 8,546 crore in December 2013. Its tier-1 capital is 5.6% versus the RBI-mandated 6.5% in March 2014.