PSU bank bad loans likely to be higher in 2013-14: Chidambaram

Bad loans of PSU banks rose 28.5 per cent to Rs 1.83 lakh crore in March 2013 over the preceding September.

To a query regarding the bad loans of United Bank of India, he said the issue would be discussed separately with RBI Governor Raghuram Rajan on Friday.

Kolkata-based United Bank posted a net loss of Rs 1,238 crore in the three months ended December, during which its gross NPAs surged to Rs 8,546 crore from Rs 2,964 crore at the end of March last year.

Chidambaram said United Bank had managed to recover Rs 1,200 crore in January and February.

Asked about the fate of new bank licenses in the wake of the Lok Sabha poll schedule announced by the Election Commission today, he said the process will not be affected due to the model code of conduct that came into effect.

”What's the code of conduct got to do (with) this? The government and regulator are discharging their normal duties...the indication I have got from the RBI...(it) wishes to issue a few licences,” he said.