Public sector lender UCO Bank has on November 2, withdrawn its earlier decision to distribute sweet packets to the bank’s top 10 NPA (non-performing asset) borrowers this Diwali.
The bank said: “It is hereby advised that the instructions contained in the aforesaid communication be withdrawn.”
Earlier in the November 1 circular UCO Bank had said: “Top management has recommended distribution of sweet packets to the top 10 NPA borrowers of each branch, in line with peer PSB like other valuable customers, where branch heads have to meet them in person, greet them on the occasion of Diwali and distribute them a packet of sweets.”
“Zonal heads have been advised to personally meet the top 10 NPA borrowers in the zones and wish them on the auspicious occasion of Diwali,” the Kotalkata-based bank’s notification added.
In an earlier circular, the bank had said that proper connectivity with such customers could bridge the gap created between them and the bank. Such activities can create empathy and satisfaction of harmony that compel some borrowers to come forward to set up their accounts with the bank.
UCO Bank will release its Q2FY24 results on November 3, 2023 It posted an 81 percent jump in net profit to Rs 223.48 crore in the June quarter of the current financial year 2023-2024. The Kolkata-headquartered bank posted a net profit of Rs 123.61 crore in the year-ago period.
The bank’s gross non-performing assets (GNPA) declined to 4.48 percent from 7.42 percent in the June quarter of the previous fiscal. Net non-performing assets (NNPA) declined to 1.18 percent from 2.49 percent. Net interest income (NII) increased by 21.78 percent to Rs 2008.80 crore for Q1FY23 compared to Rs 1649.54 crore in Q1FY24.