With gross Non Performing Asset (NPA) registering at 15.8 per cent, United Bank of India (UBI) is contemplating to initiate and act under Insolvency Act to recover the dues, a top bank official said today.

A huge chunk of NPA comes under Consortium Category, pertaining to Corporate sector, UBI Managing Director and CEO Pawan Bajaj told reporters, on the sidelines of inaugurating bank’s 2018th branch, here.

“Our share in consortium lending is about 3 per cent. We are looking to enhance the share to 10 per cent, so we have a say in it,” Bajaj said.

Replying to a question on the impact of demonetisation, Bajaj said CASA shot up from 42.8 per cent to 48.3 per cent and deposits increased by Rs.10,500 crore.

On bank’s future plans, he said that it focused to strengthen its presence in the Southern and Western parts of India, where it’s presence is weak at present. The Bank would add another 35 branches during this fiscal, including three Link centres, functioning as regional offices at Agra, Indore and Ludhiana, as against the targeted 51 branches, Bajaj said, adding that depending on the licence from RBI it has plans to add 276 branches in the next financial year.

Bajaj, who had participated in a Tea Conclave at Coonoor in Nilgiris district yesterday, said that the response from the sector was very good.

Stating that the bank’s exposure to the tea sector stood at Rs.1,000 crore, he said that considering the positive response from Coonoor, it may increase to Rs,1,200 crore, which will look after the needs of small tea growers.

With this the agriculture portfolio will grow from 10 per cent to 12 per cent in the next financial year, he said.

Bajaj said that over 3 lakh tea workers in West Bengal and Assam have opened accounts in the last two months and continue to open 200 to 30 accounts every day.