RBI raps UCO Bank for below par NPAs 2007-06-07 19:08:48 Source : Moneycontrol.com Email Print Version Watch Video The Reserve Bank of India, or RBI, says in a confidential inspection report that Kolkata-based UCO Bank has been routinely providing less funds towards NPAs than it should have. And, the difference between the actual provisions made by the bank and RBI's recommendations is huge, reports CNBC-TV18. In a confidential inspection report published in November last year, the apex bank has made some scathing remarks about UCO Bank's credit appraisal and supervision systems. Based on a review of 44 stressed assets, the RBI concludes that the bank should have provided Rs 44.6 crore more towards these NPAs in its balance sheet for the financial year 2005-06. The bank had provided Rs 21.59 crore towards these assets, whereas the apex bank recommends the provision should have been to the tune of Rs 66.19 crore! Even for the financial year 2004-05, according to the RBI, UCO Bank should have provided Rs 66 crore more towards 48 NPA accounts that were reviewed. The 2006 report reveals that the bank had not provided 100% even towards loans that had been classified as frauds. The RBI observes, "Delay was observed in the detection of fraud; some cases were being detected with a gap of one to three years. Delay in reporting to RBI was also observed in fraud cases." On restructuring of stressed assets, the RBI says, "The study of viability and funds flow s
