The Hindu Business Line : United Bank hopes to do Rs 55,000-cr biz

United Bank of India (UBI) plans to close the current fiscal with a business of Rs 55,000 crore in line with its recent growth initiatives. The bank intends to use the remaining part of this year for expanding its network and reaching out to new segments of borrowers.

UBI's plans, said Mr P. K. Gupta, CMD, would gain ground from its recent turnaround, marked by a cleaning-up of its balance sheet and return to the dividend list after a significant gap.

Mr Gupta was addressing members of the Merchants' Chamber of Commerce on Wednesday.

The bank, which proposes to widen its base in North and Central India, hopes to consolidate its presence in the regions in which it is relatively stronger — East and Northeast. About 50 branches have been planned during the fiscal, six of which are likely to be opened in the south.

UBI, which has so far done a business of about Rs 45,000 crore, will perhaps be comfortable with a credit growth of about 25-28 per cent, Mr Gupta said, while referring to critical issues regarding capital requirement.

"Banks in India are estimated to require large amounts of capital in the days ahead," Mr Gupta said, adding that banking institutions will have to look for viable sources of funds.

With reference to a probable public issue, the UBI chief maintained that the bank has taken a step in the right direction, courtesy the cleaning operation that has impacted the balance sheet. The bank now hopes to restructure its capital. UBI intends to shore up its fee-based income in the coming days.

UBI has in association with the Administrative Staff College of India designed a course on leadership development, aimed at senior personnel. The first batch of 25 top executives had undergone training in Hyderabad.