United Bank of India has highest bad loans among PSUs

United Bank of India has the most bad loans among PSU banks, according to Reserve Bank of India data given to Finance Ministry. This includes restructured assets as a percentage of total advances.

According to the data , United Bank of India's 21.5% assets are either bad or have been restructured to save them from turning non-performing assets (NPAs). The other banks that have significant gross NPAs and restructured loans include, Central Bank of India (21.30%), Indian Overseas Bank (19.40%), Punjab & Sind Bank (18.74%) and Punjab National Bank with 17.94% as on March 2015.

State Bank of Patiala, Allahabad Bank, Oriental Bank of Commerce, UCO Bank and Dena Bank all have bad and restructured loans in excess of 15%.

Rising bad loans have been a major concern for RBI as well as the government, and steps are being taken to deal with it. Most of the restructured loans in the banks' books are from the corporate sector. The top-30 defaulters are sitting on bad loans worth Rs 93,769 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2,55,180 crore as on March 2015.

There are four kinds of restructuring. The first is restructuring of advances extended to industrial units, restructuring under Corporate Debt Restructuring and restructuring of loans extended to MSME as per RBI guidelines. However, banks have their own operational rule for restructuring of small loans.

The RBI has not prescribed any board or bank level position at which these loans need to be approved.