The Group Managing Director of Union Bank of Nigeria Plc, Mrs Funke Osibodu, said the bank intends to recover about N50 billion of its outstanding debts before the end of the year.

Mrs. Osibodu said at an interactive session with journalists at the weekend that a recovery team had been put in place to actualise the bank’s target; adding that N31 billion of the bank’s debts have been recovered so far. She said the money recovered came from customers directly, stating that the bank would now go a step further to offload pledged securities.

"Most of the money recovered is from customers. Now we are moving to assets," she added.

Mrs. Osibodu said the success so far recorded was the result of team effort by bank’s staff and officials of the Economic and Financial Crimes Commission (EFCC). She said all the recoveries so far made are domiciled with the bank.

On Transcorp, the GMD said the bank has reached a settlement deal with the Federal Government. She said of the N22 billion loan, the government has paid about N600 million to the bank, while the balance of about N21 billion is covered by a one year promissory note with 8.67 per cent, which Mrs. Osibodu admitted is a fair deal.

The GMD, who was accompanied to the briefing by Mr. Adekunle Adeosun and Adebisi Sonubi, Executive Directors South, Operations and IT respectively, explained that the bank has tightened its credit system." We have tightened the system, the Credit Committee meets weekly, she said, adding that the bank has just recruited someone with the requisite experience to oversee the unit.

Mrs. Osibodu said the bank is determined to cut cost by as much as 30 per cent in its operations. She stated that since August when the new team came on board, the bank has trimmed its energy cost by about N30 million, adding that the target is to drive that further by as much as N300 million.

Mrs Osibodu dispelled remours that the bank was about retrenching its staff. She explained that the bank was in the process of repositioning 2- of its branches as model centres in Lagos to serve the customers better.

She said: We are getting the people into the right places to serve the customer right. The idea is not necessarily to sack or retrench."