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Our Bureau

Kolkata , April 11

THE net profit of United Bank of India during 2004-05 would post a negative growth at an estimated Rs 203 crore, as against Rs 315 crore in the previous year.

This is despite a 21 pc growth in total business at an estimated Rs 37,430 crore (Rs 31,179 crore) during the year.

"We've taken the hit due to higher provisioning on two counts," Mr K.N. Prithviraj, Executive Director, told Business Line here recently, referring to the shifting of securities from `available for sale' to `held-to-maturity' (an estimated Rs 120 crore) category and the probable impact of wage revision (Rs 90 crore).

The growth of business for the bank in 2004-05 was at Rs 6,251 crore as compared with Rs 2,256 crore in 2003-04 and Rs 1,790 crore in 2002-03. While total deposits at Rs 25,595 crore posted 12.5 per cent growth (as compared with 8.2 per cent in 2003-04 and 7.2 per cent in 2002-03), the total advances at Rs 11,836 crore showed 40.5 per cent growth (6.7 per cent in 2003-04 and 4.9 per cent in 2002-03). "Interestingly, the advance growth was balanced in the sense that the shares of retail credit, large corporates and mid-corporates were more or less the same in the incremental credit," Mr Prithviraj observed.

In terms of other parameters also, the bank's performance, according Mr Prithviraj, was commendable - net NPAs 2.5 per cent (3.76 per cent), gross NPAs six per cent (nine per cent) and credit-deposit ratio 46.2 per cent (37 per cent).

"But we're still way behind the industry average of 62 per cent C-D ratio," he said.

United Bank, he said, was currently working on organisational restructuring that would help firm up strategies for BPO (business process organisation) and Basel II requirements by 2007.

"The first phase technology programme has helped complete computerisation of all 1,310 branches," he said and further initiatives in this regard were on the anvil. The number of ATMs would be increased from 50 to 100 by June and five new branches would be opened shortly at Itanagar, Gangtok, Dwarka (Delhi), Tirupur and Kottayam.

For the first time, the bank went for campus recruitment, he said, adding that moves had been initiated to recruit 500 IT professionals and an equal number of probationary officers.

Mr Prithviraj has been selected for the post of CMD in Oriental Bank of Commerce.

Ms Sunanda Lahiri, General Manager, UCO Bank, will succeed him in United Bank.

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