The United Bank of India will lift restrictions on retail lending, according to the local media.
Indian newspaper The Financial Express reported that the bank has decided to resume lending operations after generating INR50bn ($807bn) through suspending loans after a disastrous third quarter.
The newspaper reported that a bank source said: "The management informed officers last Wednesday evening through an internal email communication that they can henceforth disburse fresh housing, personal as well as demand loans."
The source also said the decision may be linked to reports that the government may give the lender an injection of fresh capital.
The bank initially decided to suspend lending in December after posting a net loss of INR12.4bn with non-performing loans of INR85.5bn.
The Financial Express said that the bank would focus on recovering bad loans for the time being.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe newspaper reported that a senior bank official said: "A monitoring department has already been set up for recovery.
"We shall soon start extensive training programmes on recovery of bad loans for our employees in every branch."
Related articles:
Indian banks plan to open 10,000 branches in 2014, says Union Finance Minister
Indian public sector bank staff go on nationwide strike
PSU bank employees to go on two-day strike: UFBU