The Telegraph
 
 
IN TODAY'S PAPER
CITY NEWSLINES
 
 
ARCHIVES
Since 1st March, 1999
 
THE TELEGRAPH
 
 
Email This PagePrint This Page
UBI operating profit at Rs 91 cr in five months

Calcutta, Sept. 21: United Bank of India (UBI) has registered an operating profit of Rs 91 crore in the first five months of the current financial year. The bank, which turned around last year, had posted an operating profit of Rs 18 crore in the corresponding period of 2001-2002. The profit in the five months this year represents a near 400 per cent growth.

Madhukar, chairman and managing director of UBI, said, “The actual operating profit had been Rs 18 crore. But the bank had to take into account the cost of voluntary retirement scheme (VRS) so it had to make a provisioning of nearly Rs 18 crore. So in real terms the operating profit was Rs 36 crore. Therefore the actual increase in the first five months of the current year is 152 per cent.”

The bank may also consider a public issue in the next financial year. The size of the issue has not yet been decided.

Madhukar said, “We will come up with an IPO after March 2003. Our financials will improve by that time and investors will have more confidence in our bank.”

“The Reserve Bank of India is expected to reduce the exposure limits next year and for that we have to increase our capital base. An IPO therefore is a logical conclusion,” he added.

The bank has made substantial recoveries of sub standard assets over the last five months. It has been able to recover Rs 65 crore as against Rs 45 crore in the corresponding period of last year.

The bank has also decided to reduce interest on all categories of loans by 50 basis points from October 1.

Top
Email This PagePrint This Page