The Hindu Business Line : United Bank hopeful of 20 pc growth

Based on unaudited provisional figures, United Bank of India hopes to post nearly 20 per cent growth in business in 2005-06 at Rs 44,550 crore as compared to 19 per cent in 2004-05.

"We have missed by a whisker the business target of Rs 45,000 crore set for the year, mainly due to not-so-satisfactory growth in deposits," Mr P.K. Gupta, Chairman and Managing Director of United Bank, told Business Line, pointing out that the growth in advances during the year had been impressive, about 33 per cent at Rs 15,800 crore

Education loans

Mr Gupta particularly referred to education loan which posted nearly 100 per cent growth at Rs 155 crore (Rs 78 crore in 2004-05). The NPAs in respect of education loans were less than 1 per cent.

Retail loans, of which education loan was one, posted 55 per cent growth at Rs 2,800 crore, priority sector lending 35 per cent growth at Rs 6,450 crore and agriculture lending 44 per cent growth at Rs 2,520 crore.

The reduction in non-performing assets amounted to Rs 260 crore as compared to Rs 210 crore in 2004-05 and, of this, cash recovery was Rs 180 crore (Rs 144 crore), thus posting 33 per cent improvement.

Mr Gupta declined to comment on profits, which, he felt, might take a hit for a variety of reasons, most important being the depreciation of securities.

"We are also worried as to how to mobilise more of low-cost deposits and how to step up recovery," he observed.

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