My loan was originally with Andhra Bank — where do I submit OTS?

Post-amalgamation, all legacy Andhra Bank and Corporation Bank MSME accounts are under Union Bank. Submit to the current mapped Union Bank branch or ARB; the AGM (Recovery), Regional Office is the escalation point.

What is Union Bank's Rin Mukti scheme?

Rin Mukti (Debt Relief) is a periodic OTS scheme with standardised waivers per NPA vintage. Eligibility is set by outstanding band, vintage and sometimes sector. Where eligible, it is the fastest closure route.

How do I confirm which ARB owns my legacy account?

Ask any Union Bank branch to pull the account's current CBS mapping, or write to the Regional Office. This step alone often clarifies where the file actually sits.

Does Union Bank accept structured OTS?

Yes for regular files — up to 12 months with 10–15% on sanction. Rin Mukti scheme files are usually shorter (60–90 days).

Union Bank · Asset Recovery Branch

Union Bank MSME Loan Settlement

ARBs handle NPA cases above threshold
Rin Mukti (Debt Relief) OTS schemes launched periodically
Legacy Andhra / Corp Bank files require branch re-mapping

Free Case Assessment Talk to a Consultant

Union Bank of India, post-amalgamation with Andhra Bank and Corporation Bank, holds one of the largest PSU MSME books. All three legacy banks' MSME NPAs now sit within Union Bank's structure — routing depends on legacy-bank mapping and current Asset Recovery Branch (ARB) allocation.

The first step for legacy Andhra or Corporation Bank borrowers is to confirm which Union Bank ARB now owns the file. Filing at the wrong branch loses weeks. Once mapped, the file goes to the AGM (Recovery) at Regional Office for most MSME cases.

Union Bank periodically launches Rin Mukti (Debt Relief) OTS schemes with standardised waivers — closely track branch and Regional Office announcements.

Free Assessment

30-minute confidential case review

A senior consultant reviews your outstanding, NPA stage and options — no obligation, no cost. All conversations are covered by NDA.

• Waiver band estimate for your case
• Best-fit authority / branch to file at
• Risk of SARFAESI / auction escalation
• Documentation checklist

Union Bank OTS Policy — What Actually Governs Your Case

Union Bank's regular Compromise Policy files sit at the ARB; Rin Mukti schemes are time-bound with standardised waivers. The first job on any legacy file is mapping — the wrong ARB is a 3-week delay.

Board-approved Compromise Settlement Policy with RVS-based floor
Periodic Rin Mukti / Special OTS schemes for MSME segments
Down-payment 10–25%; balance 3–12 months
Wilful-default exclusions per RBI norms

Union Bank Observed Waiver Bands by NPA Stage

NPA Stage / Route	Observed Union Waiver Band	Down-Payment	Balance Window
Sub-standard (regular)	40–55%	10–25%	3–6 months
Doubtful (regular)	55–70%	10–20%	3–9 months
Loss Asset (regular)	60–80%	10–15%	3–12 months
Rin Mukti scheme	55–72%	10–20%	60–90 days

Union Bank Settlement Process — Step by Step

Step 1
Confidential Assessment
Case review — outstanding, NPA stage, security cover, promoter exposure. 30-minute consultation.
Step 2
Documentation & Hardship File
3-year financials, bank statements, GST, sanction letters, hardship narrative and source-of-funds evidence.
Step 3
OTS Proposal Drafting
Structured proposal referencing RBI framework, RVS working, precedent cases and payment schedule.
Step 4
Bank Submission
Proposal filed with the right authority — SAM branch / SARB / SAG / Regional Collections Head.
Step 5
Committee Negotiation
Follow-up, counter-offers, precedent deployment and final waiver / structure negotiation.
Step 6
Sanction & Payment
OTS sanction letter, down-payment, balance tranches, and receipt reconciliation.
Step 7
No Dues & Closure
No Dues Certificate, security release, CIBIL update, guarantor discharge.

Union Bank Recovery Approach & Escalation Ladder

Union Bank Asset Recovery Branches (ARBs) handle NPA cases above defined thresholds. Legacy Andhra Bank / Corporation Bank accounts route through mapped Union Bank ARBs — verify current mapping before filing.

Branch Manager — pre-NPA / small ticket
Chief Manager, ARB — routine MSME OTS
AGM (Recovery), Regional Office — effective approving authority
DGM / GM, Regional / Corporate Office — larger exposures

SARFAESI at Union Bank — Practical Realities

Union Bank SARFAESI cadence follows the PSU norm — 13(2) at 90–180 days NPA. Reply drafts pointing to a Rin Mukti application (where applicable) tend to freeze escalation more effectively than a generic reply.

Post-13(4), auction stays are available on filed OTS proposals under Regional Office review. Cases at the SARFAESI stage should file with the AGM (Recovery), Regional Office directly, with a branch copy — the ARB alone cannot stay an auction.

Eligibility

Account classified as SMA-2, NPA sub-standard, doubtful or loss asset
Not tagged as wilful default or fraud
Realistic source of funds for at least the down-payment tranche
Willingness to sign a full and final settlement with the bank
Promoter/guarantor cooperation in documentation and negotiation
No parallel criminal / recovery proceedings that block settlement

Standard Documentation

• Latest sanction letter and all amendments / renewals
• 3-year audited financials (P&L, balance sheet, notes)
• Latest GST returns (12 months) and income-tax returns
• Complete bank statements — 24 months across all lenders
• CIBIL commercial and consumer reports (self and guarantors)
• Hardship narrative — cause and consequences of stress
• Source-of-funds evidence for OTS payment
• Security valuation report (secured cases)
• SARFAESI notices, DRT filings, correspondence trail

Bank-Specific Documents

• Union Bank sanction letter and NPA classification
• Statement of Account (24 months) — check for legacy Andhra / Corp Bank references
• Current ARB mapping confirmation (from CBS)
• Latest Rin Mukti / Special OTS scheme circular
• 13(2) / 13(4) notices from Union Bank, if issued

Union Bank OTS — close-out window 90–180 days; Rin Mukti scheme 60–90 days

Week 1–2
Assessment
Case diagnosis, document collection, hardship narrative drafted.
Week 3–4
Proposal Filed
OTS proposal submitted to competent authority with all annexures.
Week 5–10
Negotiation
Committee cycle, counter-offers, RVS reconciliation.
Week 11–16
Sanction & Payment
Sanction letter, down-payment, balance tranches.
Week 17–20
Closure
No Dues Certificate, security release, CIBIL update.

Settlement Calculator (Indicative)

Rough waiver band based on NPA stage. Actual outcome depends on bank, RVS, DPD and negotiation.

Outstanding (₹)NPA Stage

Estimated waiver band: 55%–70%

Indicative payable: ₹15,00,000 – ₹22,50,000

OTS Eligibility Checker

Quick 4-question check. Not a formal opinion.

Account is NPA (Sub-standard / Doubtful / Loss) or SMA-2 Account is tagged Wilful Default / Fraud Realistic source of funds for down-payment Promoter / guarantor cooperation available

Needs review — some flags reduce OTS eligibility. Speak with a consultant.

Case Studies

Chemicals — ₹5.7 Cr Legacy Andhra Bank at Union ARB

Hyderabad chemicals SME, legacy Andhra Bank file now Union ARB. ₹5.7 Cr doubtful. OTS at ₹2.6 Cr (54%), 15% on sanction and 4 tranches over 6 months.

Trading — ₹3.4 Cr Rin Mukti Scheme

Vijayawada trading firm, ₹3.4 Cr fitting Rin Mukti scheme window. Sanctioned at ₹1.3 Cr (61.8%) with 20% down and balance in 75 days.

Manufacturing — ₹8.9 Cr Post-13(2)

Coimbatore MSME manufacturer, ₹8.9 Cr. Filed proposal with AGM (Recovery) inside 13(2) reply window. Sanctioned at ₹4.4 Cr (50.6%), 20% on sanction and 5 tranches over 8 months.

Client Voices

"Filed clean OTS with the right authority. Sanctioned in 4 months at 62% waiver."
— Rajesh K., Auto Ancillary Promoter

"Timely SARFAESI reply and structured OTS saved the shop unit. Closed with No Dues in 5 months."
— Anita S., Textile Trader

"Post-13(4) proposal filed with SAM branch — auction stayed and settled at 68% waiver."
— Vikram J., Food Processing

Frequently Asked Questions

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