United Bank CMD Archana Bhargava quits

United Bank CMD Archana Bhargava quits

United Bank of India (UBI) Chairperson & Managing Director Archana Bhargava resigned from her post on Friday, just around a year away from retirement.

While Bhargava sought voluntary retirement scheme (VRS) citing health reasons, sources said that her rift with the government due to difference of opinion on classification of non-performing assets (NPAs) was the reason behind her departure.

Financial Services Secretary Rajiv Takru yesterday confirmed her resignation and its acceptance by the government. He also said that the government would soon begin the process for appointment of a new CMD for the bank.

Confirming the development, Takru said, "She (Bhargava) has sought VRS citing health reasons. We will soon start the process for appointment of a regular CMD. In the interim period, we have asked the EDs (executive directors of the bank) to take charge."

A few days back, UBI had decided to suspend its loan facilities due to high levels of stressed assets & diminished capital adequacy. However, it resumed lending operations a few days later after reports surfaced that the government was planning to pump Rs 1,000 crore into the bank.

In the quarter ended December 31, 2013, the lender suffered a net loss of more than Rs 1,200 crore. The ratio of gross NPAs to gross advances during the same quarter climbed 10.82 per cent to Rs 8,545.50 crore.

UBI stock on Friday intra-day trading slipped to Rs 23.40 a share, the lowest since the stock's debut four years back. The stock has lost 65 per cent over the past year.

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