NEW DELHI: The Reserve Bank of India has rejected United Bank of India’s request to relax curbs on lending limit to a single client, Executive Director D. Narang said. “The RBI has rejected our request to relax the restrictions.
However, they have said depending on the Apr-Jun quarter financial results, the request may be reviewed,” Narang told Cogencis. The state-owned bank had requested the RBI to increase the lending limit to a single client to 250 mln rupees from the current cap of 100 mln rupees. The RBI had in December imposed lending restrictions on the bank, barring it from lending over 100 mln rupees to a single client after its non-performing assets spiked sharply. In Jan-Mar, United Bank of India reported a net profit of 4.69 bln rupees on account of robust growth in net interest income, recoveries and upgrade of non-performing assets.