United Bank of India (UBI) is targeting Rs 100,000 crore business in the first quarter of 2009-2010 fiscal, while it expects its capital restructuring to be over by September 2009 through issuance of perpetual non-cumulative preference shares (PNCPS) worth Rs 800 crore.
The bank?s capital adequacy would go beyond 12.5% as per Basel-2 and 12% as per Basel-1 with Rs 800 crore coming via the PNCPS route, UBI chairman Satish C Gupta told FE.
Gupta said the bank would get Rs 250 crore of Rs 800 crore on March 31. The rest, i.e., Rs 550 crore would come by September or after the next budget.
In the last quarter of the current fiscal, the bank?s business is expected to go up by Rs 11,000 crore at Rs 87,000 crore as against Rs 76,000 crore achieved during the quarter to December 2008.
During the quarter-to-quarter period to March 2008, the Kolkata-based bank clocked a business of Rs 75,000 crore.
“By June this year we would be able to touch Rs 100,000 crore business, with 22% growth in credits and 11% in deposits,” Gupta said.
He said while there has been 18-20% growth in savings account, no growth in current account has been witnessed. UBI has shed Rs 5000 crore bulk deposits in the first quarter of the current fiscal, Gupta said.