Kolkata-based United Bank of India is eyeing a 20% growth in business to touch Rs 90,000 crore by March 2009. The bank’s total business was Rs 75,123 crore in 2007-08, an increase of 102% compared with the 2004-05’s figure of Rs 37,187 crore.
PK Gupta, chairman and managing director, said: “Deposits are likely to grow by 18% to touch Rs 55,500 crore, while advances may increase by 20% touching Rs 34,500 crore.”
UBI has planned to increase the number of branches to 1,500, upgrading extension counters and bringing 900 branches under the core banking solution covering 92% of the business as against 70% at present.
The bank, which is planning to restructure the capital, reported a net profit of Rs 318.95 crore for 2007-08, a jump of 19.5% over the previous year.
“We will give a hard look at the financials and see what are the possibilities available. We have sufficient room for raising further capital for the tier II capital. We can raise Rs 500 crore as tier II capital,” said Gupta.
“In the light of our latest capital structure and the Reserve Bank of India’s guidelines, we will see what are the fresh options available. We will go to the government after the approval comes from our board,” the CMD said.
The bank has created a floating provision of Rs 161 crore against non-performing assets.
Retail credit of the bank rose by 33.4% to Rs 7,158 crore in 2007-08 from Rs 5,364 crore in 2006-07. The net non-performing asset reduced to 1.10% in 2007-08 from 1.50% in 2006-07.