MUMBAI, Aug 20: United Western Bank has decided to go in for a share buy-back as and when an amendment is made to the Companies Act.

The private sector bank has said that as soon as a share buy-back is permitted by the government, the bank will negotiate with large shareholders for buying back the bank's shares. United Western Bank, which is a listed company, may also buy back shares from the secondary market.

The management plans to do this with a view to pruning down the equity base of the bank. This will, in turn, increase the stake of the promoters in the bank.

Currently, the equity base of the bank stands at Rs 29.89 crore while the earnings per share for the year ended March 31, 1997 was at Rs 7.22.

The book value per share at present stands at Rs 42.42.

The bank has decided to participate in a venture capital fund with SICOM and has also joined the National Securities Depository Ltd as a depository participant with a view to provide electronic storage and transfer facility to its customers and shareholders.

The board of directors of United Western have chalked out a five-year business plan for the 1997-2002 period according to which the bank's deposits are expected to reach the level of Rs 6,250 crore.

The bank's advances position is expected to stand at Rs 3,450 crore at the end of March 2002.

The private sector bank also expects to post a net profit of Rs 100 crore by the end of the five year period while the earnings per shre is expected to be at Rs 12. The bank also proposes to formulate a dynamic housing loan scheme to benefit its middle class clientele. It will also introduce an employee stock option scheme during the year.

The Western India Trustee & Executor Company Ltd, a subsidiary of United Western, has posted a net profit of Rs 1.66 lakh in 1996-97. The auditors of the company have revealed a misappropriation of bonus shares of constituents to the tune of Rs 4.07 lakh during the audit for the year which ended 1996-97. The board of directors are, however, confident of recovering the entire amount that has been misappropriated. The bank posted substantial profit during 1996-97.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.