The Hindu Business Line : United Bank hopes to achieve Rs 50,000-cr business in 2 years

Mr P. K. Gupta (left), CMD, United Bank of India, and Mr Chetan Mehra, MD, Weizmann Forex Ltd, at a press conference in Kolkata on Wednesday. - - Parth Sanyal

Kolkata , May 18

UNITED Bank of India hopes to top Rs 50,000 crore of business over the next two years, a marked step-up from the current level of Rs 37,000 crore. It expects to clock a post-tax profit of Rs 500 crore in the current fiscal, up from Rs 310 crore recorded in 2004-05.

The bank, which has also targeted a corresponding increase in profitability, hopes to expand its customer base substantially over the next couple of years in order to meet its growth expectation.

Mr P.K. Gupta, Chairman & Managing Director, said: "the bank would soon embark on a customer acquisition drive. Already, it has improved its capital adequacy and recorded an increase in advances. It also proposes to set up a representative office in Dhaka."

"We would like to tap opportunities that are coming up in emerging areas. United Bank hopes to gain an entry into the forex business," he said. The bank's C-D ratio is expected to raise to to 55 per cent, from the current 47 per cent.

On Wednesday, the bank entered into a strategic partnership with Western Union, the money transfer specialists, through the latter's agent, Weizmann Forex.

The arrangement will be available at 96 United Bank branches in the first phase. This is expected to be scaled up to cover an additional 135 branches.

"The tie-up will enable United Bank customers to receive money from relatives abroad with the help of Western Union's services," Mr Gupta said.

Mr Chetan Mehra, Managing Director, Weizmann Forex, said the money transfer business is growing at a scorching pace in the country.

"Current RBI norms pose a limit of $2,500 on transactions. The number of transactions per person per year is also restricted. Also, issues related to the identity of clients are assuming significance," he observed.

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