Announcing the first half performance here on Wednesday, UBI chairman &managing director Biswajit Choudhuri said the bank's current capitaladequacy ratio was 9.6 per cent. He added that the bank proposed to raiseabout Rs 125 crore through a bond issue within the current financial year astier-II capital.

Deposits and advances increased by Rs 1086 crore and Rs 473 crorerespectively at the end of September 1999 compared to September 1998 levels.Deposits grew by 7.5 per cent to Rs 15,602 crore while advances increased by14 per cent to Rs 5027 crore. Net NPA, according to Choudhuri, has come downto 13.6 per cent at the end of September 1999 from 14.7 per cent at the endof March 1999. He added that the level would be further brought down to 12per cent by March 2000 if the present trend in advances was maintained andthe bank's internal target was to reduce NPAs by Rs 250 crore. Thepercentage of investments marked to market now stands at 80 per cent againstthe minimum 75 per cent stipulated by the Reserve Bank for the year to March31, 2000.

Choudhuri said the bank had increased volumes in forex dealing by setting upa second dealing room in Mumbai. Forex income in the current year, hepointed out, was expected to touch Rs 10 crore against Rs 7 crore in1998-99. Forex income from dealing, in the first six months of the currentyear, had gone up to Rs 2 crore from Rs 39 lakh in the corresponding periodlast year. The bank, he said, had decided to merge 10 branches in thecurrent year and set up branches in areas with strong business potential.

Besides, it has also planned upgradation of some extension counters like theone at the Bar Council of Patna high court, he noted.