Union Bank of India is looking for vendors to procure a software solution for managing recovery modules. Credit: rupixen.com on Unsplash

Union Bank of India is planning to digitise its loan recovery processes and has sought bids for the same.

The state-run lender plans to build up a single platform database solution to manage a range of recovery modules.

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Currently, the bank is seeking bids from vendors to implement the solution and maintain it for a five-year period.

These include Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi), Debt Recovery Tribunal (DRT), Insolvency and Bankruptcy Code (IBC) and civil suit.

In the event of IBC, for example, the bank wants the solution to provide template-based permission note for filing National Company Law Tribunal (NCLT) application from branch to authority through the respective office, according to Livemint.

Union Bank of India wants the solution to alert the system of eligible accounts in the case of Sarfaesi, further stated the publication.

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The solution should also alert reminders in the event of demand notice not issued within 15 days of account turning non-performing, added the publication.

The bank has recovered delinquent loans worth $480m (INR35.23bn) in the first nine months to FY21, which was lower compared to the first nine months of FY20.

Notably, Union Bank of India recently completed the integration of its IT systems with that of all branches of erstwhile Andhra Bank.

The amalgamation plan, which involved the merger of ten state-run banks into four bigger banks, was first announced by Indian finance minister Nirmala Sitharaman in September 2019.