MIRA INFORM REPORT
|
Report Date : |
17.07.2008 |
IDENTIFICATION DETAILS
|
Name : |
UNITED
BANK OF INDIA |
|
|
|
|
Registered Office : |
16, Old Court House Street, Kolkata-700001,
West Bengal |
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|
|
|
Country : |
India |
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|
|
|
Financials (as on) : |
31.03.2008 |
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|
Date of Incorporation : |
1950 |
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|
TAN
No.: [Tax
Deduction & Collection Account No.] |
CALU00376F |
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|
|
|
Legal Form : |
Public
Sector have owned by Government of India. |
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|
Line of Business : |
Banking Business |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors will
not cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD
133063500 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established Government of India bank. Available information
indicates high financial responsibility of the bank. Trade relations are
fair. Payments are usually correct and as per commitments. The bank
can be considered good for any normal business dealings. |
LOCATIONS
|
Registered Office : |
16, Old Court House Street, Kolkata-700001,
West Bengal, India |
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Tel. No.: |
91-33-22487470 |
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Fax No.: |
91-33-22480897 |
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E-Mail : |
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Website : |
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Branches
: |
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DIRECTORS
|
Name : |
Mr. P
K Gupta |
|
Designation : |
Chairman
and Managing Director |
|
Tel No.: |
91-33-22487505/
22485854 |
|
Fax No.: |
91-33-22106804 |
|
|
|
|
Name : |
Mr. T
M Bhasin |
|
Designation : |
Executive
Director |
|
Tel No.: |
91-33-22487523/
221485853 |
|
|
|
|
Name : |
Mr. Tulsidas
Bandyopadhyay |
|
Designation : |
Director
( United Bank of India) |
|
Tel No.: |
91-771-2535571/
2229471 |
|
Fax No.: |
91-771-2535571 |
|
|
|
|
Name : |
Mr. P
C Zoram Sangliana |
|
Designation : |
Director
( United Bank of India) |
|
Tel No.: |
91-389-2327761 |
|
Fax No.: |
91-389-2322439 |
|
|
|
|
Name : |
Mr.
Praveen Davar |
|
Designation : |
Director
( United Bank of India) |
|
Tel No.: |
91-11-233264229 |
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|
|
|
Name : |
Mr.
Pawan Singh Ghatowar |
|
Designation : |
Director
( United Bank of India) |
|
Tel No.: |
91-11-23794693 |
|
Fax No.: |
91-11-23794693 |
|
|
|
|
Name : |
Mr.
Manzoor Ahmed Ansari |
|
Designation : |
Director
Abdur Rajjaque Ansari Memorial Weavers Hospital (Apollo Hospital Group) IRBA,
Ranchi |
|
Tel No.: |
91-651-2275659/
2275679 |
|
Fax No.: |
91-651-2275786 |
|
|
|
|
Name : |
Ms.
Ansuya Sharma |
|
Designation : |
Director
(United Bank of India) |
|
Tel No.: |
91-522-2756310 |
|
|
|
|
Name : |
Mr. Alok Bhatnagar |
|
Designation : |
Director,
Dept. of Economic Affairs (Banking Div.), Ministry of Finance, Govt. of India |
|
Tel No.: |
91-33-23364063 |
|
|
|
|
Name : |
Mr. Suma Verma |
|
Designation : |
General
Manager, Rural Planing and Credit Department, Reserve Bank of India |
|
|
|
|
Name : |
Mr. Debashis Banerji |
|
Designation : |
Director,
United Bank of India, President, United Bank Officers' Association |
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|
|
|
Name : |
Mr. Biswajit Kakoti |
|
Designation : |
Director, United Bank of India,
Secretariat (Dispur) Branch, United Bank of India |
|
Tel No.: |
91-361-2388442/ 2220145 |
|
|
|
|
Name : |
Ms. Suprita Sarkar |
|
Designation : |
Officer’s Director |
|
Tel No.: |
91-33-22107949 |
KEY EXECUTIVES
|
Name : |
Mr. Prakritish
Basu |
|
Designation : |
General
Manager, CB and IB |
|
|
|
|
Name : |
Mrs.
Mrinal Baishya |
|
Designation : |
General
Manager, Systems and Strategies |
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|
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|
Name : |
Mr.
Ahoke Kumar Banerjee |
|
Designation : |
General
Manager, Balance Sheet Management |
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|
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|
Name : |
Mr.
Santanu Guha |
|
Designation : |
General
Manager, Asset Management |
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|
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|
Name : |
Mr.
R.K. Dasgupta |
|
Designation : |
General
Manager, Inspection and Vigilance |
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|
|
|
Name : |
Mr. Ahoke
Kumar Roy |
|
Designation : |
General Manager, Treasury
Management |
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|
Name : |
Mr.
Anup Sankar Bhattacharya |
|
Designation : |
General
Manager, Resources Management |
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|
Name : |
Mr.
Shakti Pada Biswas |
|
Designation : |
General
Manager, Pri. Sec. and New initiative |
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|
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|
Name : |
Mr.
Nirode Gopal Saha |
|
Designation : |
General
Manager, Kolkata Metro |
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|
|
|
Name : |
Mr.
Swapan Kumar Biswas |
|
Designation : |
General
Manager, Western Region Mumbai |
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|
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|
Name : |
Mr. S Madhukar |
|
Designation : |
Chairman and Managing Director |
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|
|
|
Name : |
Mr. G R Sundaravadivel |
|
Designation : |
Executive Director |
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|
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|
Name : |
Mr. P K Biswas |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Hrishikes Bhattacharya |
|
Designation : |
Director |
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|
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|
Name : |
Mr. V S Chitre |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Ram K Gupta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Dilip Phukan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Mukul Roy |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Supratim Sen |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K N Prithviraj |
|
Designation : |
Executive Director |
BUSINESS DETAILS
|
Line of Business : |
Banking Business |
GENERAL INFORMATION
|
No. of Employees : |
About 13000 |
|
|
|
|
Bankers : |
Reserve
Bank of India |
|
|
|
|
Auditors : |
Kamal
Kishore Gupta Chartered
Accountants |
CAPITAL STRUCTURE
Authorised
Capital :
Not Available
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1532430000 |
Equity Shares |
Rs. 10/- each |
Rs. 15324.300 |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
15324.300 |
15324.300 |
15324.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11288.400 |
8828.600 |
2963.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
26612.700 |
24152.900 |
18288.000 |
|
|
OTHER
FUNDS |
|
|
|
|
|
1] Deposits |
469707.200 |
371666.600 |
292497.700 |
|
|
2] Borrowings |
11620.700 |
3997.200 |
2966.200 |
|
|
TOTAL BORROWING |
481327.900 |
375663.800 |
295463.900 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
507940.600 |
399816.700 |
313751.900 |
|
|
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
6228.100 |
6052.200 |
2050.600 |
|
|
Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
185146.400 |
146018.100 |
141295.100 |
|
|
DEFERREX
TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Cash & Balances with Reserve Bank of India |
52494.200
|
26864.100
|
14342.200
|
|
|
Balance with Banks & Money at call & short notice |
6227.300
|
15985.500
|
13430.100
|
|
|
Other
Current Assets |
14432.400
|
6614.300
|
6136.100
|
|
|
Loans
& Advances |
278581.100
|
221563.200
|
155223.100
|
|
Total Current
Assets |
351735.000 |
271027.100 |
189131.500
|
|
|
Less : CURRENT LIABILITIES &
PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
35168.900
|
23280.700
|
18725.300
|
|
|
Provisions |
0.000
|
0.000
|
0.000
|
|
Total Current
Liabilities |
35168.900 |
23280.700 |
18725.300
|
|
|
Net Current Assets |
316566.100 |
247746.400 |
170406.200
|
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
507940.600 |
399816.700 |
313751.900 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales
Turnover |
35573.000 |
28250.900 |
23600.300 |
|
|
Other Income |
6901.100 |
3798.200 |
4880.000 |
|
|
Total
Income |
42474.100 |
32049.100 |
28480.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3189.500 |
2672.800 |
2045.700 |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
3189.500 |
2672.800 |
2045.700 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Interest expanded |
26526.900 |
16752.000 |
13395.100 |
|
|
Operating Expenses |
9032.000 |
7784.900 |
8336.800 |
|
|
Other Expenditure |
3725.700 |
4839.400 |
4702.700 |
|
Total
Expenditure |
39284.600 |
29376.300 |
26434.600 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Credit Deposit Ratio |
59.44 |
56.73 |
49.29 |
|
Investment Deposit Ratio |
39.36 |
43.26 |
52.26 |
|
Cash Deposit Ratio |
9.43 |
6.20 |
5.54 |
|
Interest Expended/Interest Earned |
74.57 |
59.30 |
56.76 |
|
Other Income/Total Income |
16.25 |
11.85 |
17.13 |
|
Operating Expense/Total Income |
21.26 |
24.29 |
29.27 |
|
Interest Income/Total Funds |
7.44 |
7.54 |
7.64 |
|
Interest Expended /Total Funds |
5.55 |
4.47 |
4.34 |
|
Net Interest Income/Total Funds |
1.89 |
3.07 |
3.30 |
|
Non Interest Income/Total Funds |
1.44 |
1.01 |
1.58 |
|
Operating Expense/Total Income |
1.89 |
2.08 |
2.70 |
|
Profit Before Provisions/Total Funds |
1.45 |
2.01 |
2.18 |
|
Net Profit/Total Funds |
0.67 |
0.71 |
0.66 |
|
Return On Net Worth(%) |
15.62 |
14.83 |
11.63 |
LOCAL AGENCY FURTHER INFORMATION
Audited
Financial Results for the year ended 31.03.2008
Rs. In millions
|
PARTICULARS |
Quarter Ended |
Year Ended |
|||||
|
31.03.2008 |
31.03.2007 |
31.03.2008 |
31.03.2007 |
||||
|
1. |
Interest Earned (a) + (b) + (c) + (d) |
9235.200 |
7819.800 |
35573.000 |
28251.000 |
||
|
|
a) |
Interest
/ Discount on advances / bills |
6079.600 |
5032.800 |
22466.200 |
16541.000 |
|
|
|
b) |
Income
on Investments |
3108.100 |
2598.800 |
12935.100 |
11099.500 |
|
|
|
c) |
Interest
on balances with RBI /Other Banks |
33.200 |
197.200 |
74.100 |
411.100 |
|
|
|
d) |
Others |
14.300 |
(9.000) |
97.600 |
199.400 |
|
|
2. |
Other Income |
1703.800 |
1451.100 |
4654.900 |
3476.700 |
||
|
A. |
TOTAL INCOME (1) + (2) |
10939.000 |
9270.900 |
40227.900 |
31727.700 |
||
|
3. |
Interest Expended |
7454.200 |
4730.400 |
26526.900 |
16752.000 |
||
|
4. |
Operating Expenses (e) + (f) |
2750.300 |
2309.200 |
9031.600 |
7784.700 |
||
|
|
e) |
Payments
to and provisions for employees |
2055.100 |
1650.800 |
6415.700 |
5575.200 |
|
|
|
f) |
Other
operating expenses |
695.200 |
658.400 |
2615.900 |
2209.500 |
|
|
B. |
TOTAL EXPENDITURE (3) + (4) |
10204.500 |
7039.600 |
35558.500 |
24536.700 |
||
|
C. |
OPERATING PROFIT (A) – (B) (Profit
before Provisions and Contingencies) |
734.500 |
2231.300 |
4669.400 |
7191.000 |
||
|
D. |
Provisions and Contingencies |
617.000 |
1876.900 |
1479.900 |
4518.200 |
||
|
E. |
NET PROFIT (C) – (D) |
117.500 |
354.400 |
3189.500 |
2672.800 |
||
|
5. |
Capital |
15324.300 |
15324.300 |
15324.300 |
15324.300 |
||
|
6. |
Reserves
excluding revaluation reserves |
-- |
-- |
6416.700 |
3765.000 |
||
|
7. |
Analytical Ratios |
|
|
|
|
||
|
|
i) |
Percentage
of shares held by Govt. of India |
100% |
100% |
100% |
100% |
|
|
|
ii) |
Capital
Adequacy Ratio (%) |
11.88% |
12.02% |
11.88% |
12.02% |
|
|
|
iii) |
Earning
per share (Rs)(not annualised) |
DNA |
DNA |
DNA |
DNA |
|
|
|
iv) |
a) |
Amount
of Gross NPAs |
7610.000 |
8170.000 |
7610.000 |
8170.000 |
|
|
|
b) |
Amount
of Net NPAs |
3060.000 |
3330.000 |
3060.000 |
3330.000 |
|
|
|
c) |
% of
Gross NPA (%) |
2.69% |
3.60% |
2.69% |
3.60% |
|
|
|
d) |
% of
Net NPA (%) |
1.10% |
1.50% |
1.1% |
1.50% |
|
|
v) |
Return
on Assets (Annualised)
(%) |
0.68% |
0.73% |
0.68% |
0.73% |
|
Notes:
The above results have been taken on record by the Board of Directors at its meeting held on April 24, 2008
The working results for the year ended 31.03.2008 have been arrived at after considering provision for Non performing and Standard Assets as per Reserve Bank of India guidelines. In respect of Pension, Gratuity and Leave Encashment provision has been made on actuarial basis.
Provision for taxes includes Fringe Benefit Tax and adjustment for deferred tax, in accordance with the accounting standard 22 - Taxes on income, of The Institute of Chartered Accountants of India.
Previous year figures have been regrouped / rearranged, wherever necessary
Segment
Reporting for the year ended 31.03.2008
|
Particulars |
Quarter ended |
Quarter ended |
Year ended on 31.03.2008 |
Year ended on 31.03.2007 |
|
a) Segment Revenue |
|
|
|
|
|
Treasury Operations |
3700.000 |
2880.000 |
14800.000 |
11940.000 |
|
Corporate /Wholesale Banking |
8860.000 |
-- |
8860.000 |
-- |
|
Retail Banking |
16570.000 |
-- |
16570.000 |
-- |
|
Other Banking Operations |
(18600.000) |
6230.000 |
-- |
19790.000 |
|
Total |
10530.000 |
9110.000 |
40230.000 |
31730.000 |
|
b) Segment Results |
|
|
|
|
|
Treasury Operations |
2030.000 |
200.000 |
3940.000 |
1930.000 |
|
Corporate /Wholesale Banking |
1510.000 |
-- |
1510.000 |
-- |
|
Retail Banking |
2940.000 |
-- |
2940.000 |
-- |
|
Other Banking Operations |
(4370.000) |
2940.000 |
-- |
7370.000 |
|
Total |
2110.000 |
3140.000 |
8390.000 |
9300.000 |
|
c) Unallocated Expenses (Net of unallocated
income) |
(1370.000) |
(910.000) |
(3720.000) |
(2110.000) |
|
d) Operating
Profit |
740.000 |
2230.000 |
4670.000 |
7190.000 |
|
e) Provisions and Contingencies |
620.000 |
1880.000 |
1480.000 |
4520.000 |
|
f) Extraordinary Profit/loss |
-- |
-- |
-- |
-- |
|
g) Net Profit |
120.000 |
350.000 |
3190.000 |
2670.000 |
|
h) Other Information |
|
|
|
|
|
i) Segment Assets |
|
|
|
|
|
Treasury Operations |
185150.000 |
188870.000 |
185150.000 |
188870.000 |
|
Corporate and Wholesale Banking |
96470.000 |
-- |
96470.000 |
-- |
|
Retail Banking |
182110.000 |
-- |
182110.000 |
-- |
|
Other Banking Operations |
-- |
221560.000 |
-- |
221560.000 |
|
Unallocated Assets |
79080.000 |
12430.000 |
79080.000 |
12430.000 |
|
Total Assets |
542810.000 |
422860.000 |
542810.000 |
422860.000 |
|
Segment Liabilities |
|
|
|
|
|
Treasury Operations |
169180.000 |
176670.000 |
169180.000 |
176670.000 |
|
Corporate and Wholesale Banking |
118460.000 |
-- |
118460.000 |
-- |
|
Retail Banking |
220000.000 |
-- |
220000.000 |
-- |
|
Other Banking Operations |
-- |
222910.000 |
-- |
222910.000 |
|
Unallocated Liabilities |
35170.000 |
23280.000 |
35170.000 |
23280.000 |
|
Total liabilities |
542810.000 |
422860.000 |
542810.000 |
422860.000 |
HISTORY
Subject is one of the 14 major banks which were nationalised on July 19, 1969.
Its predecessor The United Bank of India Limited., was formed in 1950 with the amalgamation
of four banks viz. Comilla Banking Corporation Limited. (1914), Bengal Central
Bank Limited. (1918), Comilla Union Bank Limited. (1922) and Hooghly Bank
Limited. (1932) (which were established in the years indicated in brackets
after the names). The origin of the Bank thus goes back as far as 1914. As
against 174 branches, Rs.1470.000 millions of deposits and Rs.1120.000
millions of advances at the time of nationalisation in July, 1969, today the
Bank has 1310 branches, over Rs. 227580.000 millions of deposits and Rs.
84210.000 millions of gross advances as on 31-03-04. Presently the Bank has a
three-tier organisational set-up consisting of the Head Office, 28 Regional
Offices and 1310 branches.
After
nationalisation, the Bank expanded its branch network in a big way and actively
participated in the developmental activities, particularly in the rural and
semi-urban areas in conformity with the objectives of nationalisation. In
recognition of the role played by the Bank, it was designated as Lead Bank in
several districts and at present it is the Lead Bank in 34 districts in the
States of West Bengal, Assam and Tripura. The Bank is also the Convener of the
State Level Bankers' Committees (SLBC) for the States of West Bengal and
Tripura.
UBI played
a significant role in the spread of banking services in different parts of the
country, more particularly in Eastern and North-eastern India. UBI has
sponsored 11 Regional Rural Banks (RRB) five of which are in West Bengal, four
in Assam and one each in Manipur and Tripura. These eleven RRBs together have
over 1000 branches. In its efforts to provide banking services to the people
living in the not easily accessible areas of the Sunderbans in West Bengal, UBI
had established two floating mobile branches on motor launches which moved from
island to island on different days of the week. The floating mobile branches
were discontinued with the opening of full-fledged branches at the centres
which were being served by the floating mobile branches. UBI is also known as
the ‘Tea Bank' because of its age-old association with the financing of tea
gardens. It has been the largest lender to the tea industry.
The Bank
has three full fledged Overseas Branches one each at Calcutta, New Delhi and
Mumbai with fully equipped dealing room and swift terminal . The
operations of 500 branches have been computerised either fully or partially and
Electronic Fund Transfer System came to be implemented in the Bank's branches
at Calcutta, Delhi, Mumbai and Madras. The Bank has ATMs at
Kolkata, New Delhi and at Mumbai. The coverage of ATMs is being expanded
to other cities. The Bank has tie-up arrangement with Western Union to
facilitate foreign currency transfers.
highlights
Highlights
of UBI Performance in 2004-05
Ř
United
Bank of India continues to grow from strength to strength, adding not only to
profits but also to Capacities to undertake new business. Total business
increased by 19.3% from Rs. 0.311 million to Rs. 0.371 million.
Ř
Deposit
increased to Rs. 0.253 million registering a growth of 11.4%.
Ř
During
the year, the Bank registered an increase of Rs. 0.034 million in Gross
advances from Rs. 0.084 million in March 2004 to Rs. 0.118 million in March 205
recording an all time high growth rate of 40.6%.
Ř
Credit-Deposits
Ratio (CDR) rose to 46.7% from 37.0% in March 2004.
Ř
Operating
profit increased to Rs. 0.006 million during 2004-05 compared to Rs. 0.006
million in the previous year.
Ř
Net
profit after making provisions was Rs. 0.003 millions.
Ř
The
Bank is focusing on lending to agriculture, small scale industries,
infrastructure, retail and corporates.
Ř
The
Bank met the directives of Government of India for doubling the flow of credit
to agriculture and its disbursement to agriculture amounted Rs 10660.000
millions forming 41.5% over the disbursement made in agriculture in the
previous year.
Ř
Priority
sector credit increased from Rs. 35340.000 millions to Rs. 45570.000 millions.
Ř
Agricultural
credit increased from Rs. 12220.000 millions to Rs 16070.000 millions.
Ř
SSI
credit increased from Rs. 5110.000 millions to Rs. 8200.000 millions.
Ř
During
the year, retail lending increased from Rs. 9610.000 millions to Rs. 18080.000
millions forming 15.3 % of total advances.
Ř
The
percentage of standard assets increased to 94% in March 2005 compared to 91% in
March 2004.
Ř
Net
NPA ratio dropped to 2.43% from 3.76% in the previous year.
Ř
During
the year the Bank completed 100% computerization of its 1310 branches.
Ř
Bank
has successfully participated in the Real Time Gross Settlement (RTGS) system
during the year. The facility is now available from 39 branches across the
country.
Ř
With
a view to enlarge the coverage of potential centers, the bank opened 10
branches. Three branches in metropolitan areas were merged. First branch in the
State of Sikkim opened.
Ř
The
Bank continued to maintain its safety net by achieving Capital Adequacy Ratio
at 18.16% as against the stipulated norm of 9%.
Ř
Staff
productivity increased during the year. Business per employee increased to Rs
20.800 millions in March 2005 from Rs 16.900 millions in March 2004.
Ř
Business
per branch increased from Rs 239.000 millions to Rs 284.000 millions.
The United Bank of India Limited., was formed in 1950 with the amalgamation of four banks i.e. Comilla Banking Corporation Limited. (1914), Bengal Central Bank Limited. (1918), Comilla Union Bank Limited. (1922) and Hooghly Bank Limited. (1932). United Bank of India (UBI) is one of the 14 major banks, which were nationalised in 1969.
After nationalisation, the Bank expanded in a big way and actively participated
in the developmental activities, particularly in the rural and semi-urban areas
in conformity with the objectives of nationalisation. In recognition of the
role played by the United Bank of India, it was designated as Lead Bank in
several districts and at present it is the Lead Bank in 34 districts in the
States of West Bengal, Assam and Tripura
UBI played a important role in the spread of banking services in different
parts of the country, particularly in Eastern and North-eastern India. United
Bank of India is also known as the 'Tea Bank' because of its age-old
association with the financing of tea gardens.The Bankt has been the largest
lender to the tea industry.
Presently the Bank has a three-tier organisational set-up consisting of the
Head Office, 28 Regional Offices and 1315 branches. The Bank has three full
fledged Overseas Branches one each at Calcutta, New Delhi
AS
PER WEBSITE:
Press Release :
Performance Highlights For The Year
Ended 31st March, 2007
United
Bank of India's business grows by 32.3% to Rs 598080 millions.
Deposits
grow by 27.1% to Rs 371670.000 millions.
Advances
grow by 41.8% to Rs 226410.000 millions.
Net
Profit goes up 30.7% (Y-o-Y).
Pays Rs
45.97 millions Dividend to the Government.
Gross
NPA goes down to 3.60%.
Net NPA
goes down to 1.50%.
22%
business covered under Core Banking Solution.
The Board of Directors of United Bank of India met in Kolkata
today to take on record the Annual Results for the year ended 31st March, 2007.
While announcing the financial results for the FY 2006-07 at
Bank's headquarters in Kolkata today, Shri P.K. Gupta, CMD of the Bank, said
that an amount of Rs. 459.700 millions has been declared as Dividend to be paid
to the Government which is the same as last year.
The Bank has achieved a total business figure of Rs 598080.000
millions, a rise of 32.3% over the preceding financial year and has far
exceeded its business target of Rs 550000.000 millions. The Bank's total
Deposits have increased from Rs 292500.000 millions as on March 2006 to Rs
371670.000 millions, registering a healthy growth of 27.1% whereas the Gross
Advances have increased from Rs 159630.000 millions to Rs 226430.000 millions
registering a robust growth of 41.8% during the same period. Consequently, the
Credit Deposit Ratio has moved up from 54.6% to 60.9% as on March 2007.
Bank's Net Profit has gone up by 30.7% from Rs 2045.700 millions
to Rs 2672.800 millions. The profit after providing for proposed Dividend and
tax thereon has been, inter-alia, appropriated towards Statutory Reserve (Rs
668.200 millions) and Revenue Reserve (Rs 1416.000 millions).
The Operating Profit of the Bank has increased from Rs 6438.500
millions as on March 2006 to Rs 7191.000 millions as on March 2007 registering
a growth of 11.7%. Q4 over Q4, the same has gone up by 45.7% from Rs 1531.900
millions to Rs 2231.300 millions.
The Tangible Net Worth of the Bank has improved from Rs 18288.000
millions as on March 2006 to Rs 24152.900 millions as on March 2007 registering
a growth of 32.07%. During the year 2006-07, the Bank has raised Rs 3000.000
millions as Tier II Capital. The Bank's Capital Adequacy Ratio (CRAR) stood at
a healthy level of 12.02% as on March 2007.
Shri Gupta said that the Priority Sector Advances also show a
healthy growth of 32.3% and are at Rs 94050.000 millions as on 31st March,
2007. Agriculture advance has gone up by 16.6% to reach at the level of Rs
27130.000 millions; the credit to SSI Sector has witnessed a growth of 21.3% to
reach at Rs 15810.000 millions. Bank's Retail Credit has increased from Rs
28330.000 millions as on March 2006 to Rs 45360 millions as on March 2007
registering a growth of 60.1%. Advance under Education Loan has increased by
48% from Rs 1520.000 millions as on March 2006 to Rs 2250.000 millions as on
March 2007.
The Asset quality of the Bank has improved. The Gross NPA ratio
has declined from 4.66% to 3.60% and the Net NPA Ratio has declined from 1.95%
in March 2006 to 1.50% in March 2007. During the year, the Bank has sold 17
Non-Performing Assets having Book Value of Rs 753.700 millions to ARCIL.
Elaborating on the IT initiatives taken by the Bank, Shri Gupta
informed about the much awaited roll-out of Core Banking Solution (CBS). Within
a period of five weeks from the date of rolling out in January 2007, about 22%
of the Bank's total business has been migrated to this new platform. The Bank
envisages covering 600 branches representing 84% of its business in phases,
under CBS. The Bank has already introduced Internet Banking which was launched
by the Hon'ble Union Finance Minister Shri P. Chidambaram on 6th December 2006.
The Bank has established Virtual Private Network (VPN) backbone for its various
delivery channels and 409 Branches have already been covered under the Network.
Shri Gupta further informed that as many as 111 branches are under RTGS (Real
Time Gross Settlement) through which Bank's customers have been provided
inter-bank fund transfer facility.
The Bank has opened 7 branches during the year taking its network
of branches to 1325. The Bank has plans to open 41 more branches before June
2007. Bank's own ATM network has gone up to 144 as on March 2007. Besides, the
Bank has a tie-up arrangement under cash tree with 11 more Banks through which
its customers can access more than 3000 ATMs.
During the current financial year, the Bank plans to give a big
thrust to its non-interest income by starting Cash Management and Depository
Services, besides maintaining its share of Government business and distribution
of third party products.
Significant Improvement in
Credit Deposit Ratio in West Bengal
A
special State Level Bankers' Committee Meeting for the State of West Bengal was
held on 31.03.2007 to review the performance of Banks for the quarter ended
December,2006. The meeting also reviewed the progress made with regard to major
decisions of the last Special SLBC meeting held on 07.11.2006. Shri Pawan Kumar
Bansal, Hon'ble Minister of State for Finance (EB & I), Govt. of India
presided over the meeting and Dr. Ashim Dasgupta, Hon'ble Finance Minister,
Govt. of West Bengal graced the occasion. The meeting was attended, by among
others, Shri P.K. Gupta, CMD of United Bank of India and Chairman of the State
Level Bankers' Committee for the State of West Bengal, Shri V. Sridar, CMD of
UCO Bank, Shri A.C.Mahajan, CMD of Allahabad Bank along with Senior Executives
of the banks of the State. Senior Officials from the State Government also
attended the meeting. Shri V.S.Das, Executive Director of the Reserve Bank of
India & Senior Officials of RBI were also present. Dr K.G. Karmakar,
Managing Director along with the Executive Director represented NABARD.
Shri
Pawan Kumar Bansal, Hon'ble Minister of State for Finance (EB and I), Govt. of
India in his keynote address desired for enhanced flow of credit to agriculture
and other priority sectors so as to ensure attainment of national goals. Shri
Bansal emphasized on micro-financing and suggested for coverage of additional
eight districts in the State for 100% financial inclusion during the next year.
Dr. Asim
Dasgupta, Hon'ble Finance Minister of the State, during his deliberations
expressed his satisfaction over the increase in Credit Deposit Ratio by 5
percentage points over March 2006 up to 65% against the yearly target of 5
percentage points rise and urged the banks to raise the
CD Ratio of rural, semi-urban and urban areas of the State by five percentage
points during the next financial year. He also advised the bankers to extend
credit to two lakh un-employed youths through Employment Generation Schemes
during 2007-08. Dr. Dasgupta suggested for setting higher targets for
agriculture and Small Scale Industries for 2007-08 with special emphasis on
financing to Small & Marginal farmers, oral lessees, patta holders and
small entrepreneurs keeping in view the requirement of the State. The Hon'ble
Finance Minister assured full support of the State Government for further
improvement of 5% recovery during the next year also.
Reviewing
the performance of the banking system during April to December 2006 for the
year 2006-07, Shri P.K. Gupta, Chairman of the Convener Bank, SLBC stated that
the banks sanctioned 100168 cases under different Self Employment Schemes
registering a growth of 19% over the 83836 cases sanctioned during April to
December 2005.
The
Banks during April to Dec.'06 disbursed Rs. 63730.000 millions against the
Annual Credit Plan of Rs. 109250.000 millions for 2006-07, which marks an
increase of 24% over the disbursement of Rs.5154 cr. during the corresponding
period of the last year. Shri Gupta also stated that estimated disbursement
would be Rs 105810 millions for 2006-07.
The
Banks made Savings Linkage to 87407 Self Help Groups and Credit Linkages to 70639
Groups during April to December 2006.
United
Bank Of India Ties Up With Kotak Mahindra AMC
Subject is a leading public sector bank has signed a Memorandum of Understanding (MOU) with Kotak Mahindra AMC, one of the leading fund houses in the country, for the distribution of its various Mutual Fund Schemes. Speaking on the occasion, Mr. Swapan Biswas (General Manager – Marketing & New Initiatives, United Bank of India), said, “With the signing of this agreement with Kotak Mahindra AMC, which is one of India’s leading fund houses, the bank has taken yet another step towards offering a holistic financial solution to the diverse financial needs of its valued customers They are confident that the distribution of Mutual Fund products will make a significant contribution to the fee income in the coming years. The Bank is having a number of specified branches for distribution of various Mutual Fund schemes. The main purpose of such initiative of the Bank is to provide a wider range of investment options to its esteemed customers.”
United Bank of India
launches Agriculture Debt Waiver and Relief Scheme in Uttar Pradesh
Subject has launched Agriculture Debt Waiver and Debt Relief Scheme,
2008 in Uttar Pradesh today. For this purpose Shri T.M. Bhasin, Executive
Director and Shri T.K.Mukherjee, General Manager (Credit) addressed a meeting
of Senior officials of the Regional Office and Branch Managers in which details
of the scheme and implementation strategy was discussed threadbare.
United Bank of India has a network of 53 branches in Uttar Pradesh
handling business of Rs. 17670.000 millions comprising of Rs. 13900.000
millions deposits and Rs. 3770.000 millions loans and advances. Shri T.M.
Bhasin, Executive Director and Shri T.K.Mukherjee, General Manager also visited
branches in order to oversee the progress of implementation of the Debt Relief
/ Waiver Scheme. Shri Bhasin directed the Senior officials of the Regional
Office and Branch Managers to implement the Agricultural Debt Waiver and Debt
Relief Scheme within 30th June, 2008.
Considering the importance of the Scheme, all Branches were directed
that accuracy and integrity of the eligible farmers/borrowers is to be
maintained for displaying final list in the branches. The list of eligible
farmers is to be displayed at the branches by 20th June, 2008 which is to be
checked by the officials of the Regional Office for its correctness. Shri
Bhasin further mentioned that errors of inclusion and exclusion in the eligible
borrowers list should be avoided to make the exercise of debt waiver/relief
totally error free. He also directed to the branches to display the Vernacular
version of the scheme on the branch Notice Board, if not already done. In order
to redress the grievance of the farmers in the regard to list displayed, it was
informed to the branches and Regional officials that the Chief Regional
Managers concerned will be the Grievance Redressal Officer for the scheme.
United Bank of India has witnessed a significant growth of 102% in Total
Business from Rs. 371870.000 millions as on March 2005 to Rs. 751230.000
millions as on March 2008. During the same period the Deposits have grown by
85.3% from Rs. 253480.000 millions to Rs. 469710.000 millions whereas the
Advances have grown by 137.8% from Rs. 118390.000 millions to Rs. 281520.000
millions. As a result, the Credit Deposit Ratio has improved from 46.7% to 60%
during the three-year period.
United Bank of India has been paying Dividend to Govt. of India for the
past three years. This year Rs. 460.000 millions has already been paid to Govt.
of India as Dividend. The Gross NPA Ratio has sharply declined from 6.14% as on
March 2005 to 2.70% as on March 2008. Equally impressive improvement was
registered in the Net NPA Ratio which has declined from 2.43% as on March 2005
to 1.10% as March 2008.
The Net Worth of the Bank has risen significantly from Rs. 15960.000
millions as on March 2005 to Rs. 26610.000 millions as on March 2008,
registering a growth of 66.7% over the period. The Bank’s Capital Adequacy
Ratio stands at a comfortable level of 11.88% as on March 2008.
&Bank’s Business per Branch has been showing consistent improvement
year-over-year and from 283.900 millions as on March 2005, it has improved to
Rs. 536.200 millions as on March 2008. The Business per Employee has also shown
an equally impressive growth from Rs. 20.800 millions as on March 2005 to Rs.
46.300 millions as on March 2008.
Bank has rolled out Core Banking Solution (CBS) at 442 of its branches
covering 72% of the total business as on date. Bank’s customers can use more
than 20,000 ATMs under NFS Network and cashtree arrangement. The Bank provides
Internet Banking facility, christened as united online at 250 branches along
with the facility of e-payment of Service Tax and Excise Duties, etc.
The Bank has set up Rural Development & Self Employment Training
Institutes (rudsetIs) at Rajpur, 24-Parganas (South) in August 2007 and at
Belur, Howrah in March 2008. The Foundation for the third rudseti at Amarkanan,
Bankura (West Bengal) has also been laid on 14th April, 2008.
With a view to attaining Pan-India presence, the Bank has expanded its
branch network by 76 new branches 1401 as on March 2008 as against 1325
as on March 2007.
During the current financial year (2008-09), United Bank of India
envisages a growth of 20% in its Total Business to reach at Rs. 900000.000
millions with Deposits expected to grow by 18% to reach at the level of Rs.
555000.000 millions and Advances by 22% to reach at the level of Rs. 345000.000
millions. The Bank intends to add another 65 branches to its network to take it
to 1466 from 1401 as on March 2008. The Bank would aggressively pursue the
roll-out of CBS Branches so as to put 900 branches covering 92% of its business
under Core Banking Solution by March 2009. The Virtual Private Network is also
being extended to cover 950 branches as against 730 as on March 2008.
United
Bank of India pays Rs 460.000 millions Dividend to Government of India
consecutive for third year
Subject has paid a dividend of Rs 459.700 millions for the financial year ended March 31, 2008 to the Government of India. Sri P. K. Gupta, Chairman and Managing Director of United Bank of India presented the dividend cheque to the Hon’ble Finance Minister, Sri P. Chidambaram on May 28, 2008 at New Delhi.
United Bank of India has shown a significant improvement in its Business performance over a period of three years from March 2005 to Mach 2008. The Total Business of the Bank has clocked a growth of 102% from Rs 371870.000 millions as on Mach 2005 to Rs 751230.000 millions as on Mach 2008. During the same period, the Deposits have grown by 85.3% from Rs 253480.000 millions to Rs 469710.000 millions whereas the Advances have grown by 137.8% from Rs 118390.000 millions to Rs 281520.000 millions. As a result, the Credit Deposit Ratio has improved fro 46.7% to 60% during the three-year period.
The Gross NPA Ratio has sharply declined from 6.14% as on March 2005 to 2.70% as on March 2008. Equally impressive improvement was registered in the Net NPA Ratio which has declined from 2.43% as on March 2005 to 1.10% as on March 2008.
The Net worth of the Bank has risen significantly from Rs 15960.000 millions as on March 2005 to Rs 26610.000 millions as on March 2008, registering a growth of 66.7% over the period. The Bank’s Capital Adequacy Ratio stands at a comfortable level of 11.88% as on March 2008.
Bank’s Business Per Branch has been showing consistent improvement year-over-year and from Rs 283.900 millions as on Mach 2005, it has improved to Rs 536.200 millions as on March 2008. The Business Per Employee has also shown an equally impressive growth from Rs 20.800 millions as on March 2005 to Rs 46.300 millions as on March 2008.
Bank has rolled out Core Banking Solution (CBS) at 442 of its branches covering 72% of the total business as on date. Bank’s customers can use more than 20,000 ATMs under NFS Network and cashtree arrangement. The Bank provides Internet Banking facility, christened as united online at 250 branches along with the facility of e-Payment of Service Tax and Excise Duties, etc.
The Bank has received Awards from Khadi and Village Industries Board for ranking First in Lending under Rural Employment Generation Programme (REGP) for Eastern and North-Eastern Zones for the year 2006-07. The Bank has set up Rural Development & Self Employment Training Institutes (Rudsetis) at Rajpur, 24-Parganas (South) in August 2007 and at Belur, Howrah in March 2008. The Foundation for the third Rudseti at Amarkanan, Bankura (West Bengal) has also been laid on 14th April 2008.
With a view to attaining Pan-India presence, the Bank has expanded its branch network to 1401 as on March 2008 as against 1325 as on March 2007. Out of the 76 new branches opened during the year 2007-08, 26 branches are under North India Region of the Bank.
During the current financial year (2008-09), United Bank of India envisages a growth of 20% in its Total Business to reach at Rs 900000.000 millions with Deposits expected to grow by 18% to reach at the level of Rs 555000.000 millions and Advances by 22% to reach at the level of Rs 345000.000 millions. The Bank intends to add another 65 Branches to its network to take it to 1466 from 1401 as on March 2008. The Bank would aggressively pursue the roll-out of CBS Branches so as to put 900 Branches covering 92% of its business under Core Banking Solution by March 2009. The Virtual Private Network would cover 950 branches as against 730 as on March 2008.
United
Bank of India, a leading public sector bank signed a Corporate Agency Agreement
with Export Credit Guarantee Corporation of India Ltd. (ECGC) at the United
Bank of India’s Head Quarters at Kolkata
Subject is a leading public sector bank signed a Corporate Agency Agreement with Export Credit Guarantee Corporation of India Limited (ECGC) on 16th January 2008 at the United Bank of India's Head Quarters at Kolkata. The agreement envisages marketing of export credit insurance products of ECGC through the Bank's network of branches. The agreement was signed by Shri S.Biswas, General Manager, Marketing and NI, United Bank of India and Mr. V. Viswanathan, General Manager, National Marketing Division, ECGC and the copies of the agreement were exchanged between the Chairman and Managing Director of United Bank of India Shri P. K. Gupta and Chairman and Managing Director of ECGC Shri A. V. Muralidharan.
Speaking on the occasion, Shri P.K Gupta, CMD of United Bank of India, said that the Corporate Agency agreement with ECGC is one more step taken by the Bank for the benefit of customers in pursuance of the Bank's mission to provide its customers premier financial services of great value. The tie up with ECGC would be beneficial for the exporter customers who would get insurance protection against payment risks under various types of ECGC policies at the bank branches itself. The enhanced services will help in higher customer satisfaction and also bring in more customers into the Bank's fold. United Bank of India is positioning itself as a financial supermarket to provide to its customers a wide range of products and services like demat, credit cards, insurance and mutual funds with better access and greater convenience to different customer segments.
Shri P.K. Gupta also said that the bank has also taken major steps on the I.T. front to provide more convenience to the customers. At present, the Bank offers Multi Branch Banking and Internet Banking facility to its customers in 346 branches. The Bank also has 255 branches under CBS covering 60% of its business. The Bank has at present 161 ATMs of its own, besides the tie-up with Cash Tree and NFS network by virtue of which Bank's current 3.7 lac card holders can access more than 30,000 ATMs all over the country. The Bank's card-holders can also use ATMs and POS Terminals across all global outlets carrying VISA logo. The Bank also is going to launch Cash Management and Online Share Trading Services soon.
Speaking about the Bank's performance, Shri P.K Gupta, Chairman & Managing Director briefed that during the half year ended 30th September 2007, the Bank has achieved a total business of Rs. 619630.000 millions clocking a y-o-y growth of 26.9%. Bank's Net Profit stood at Rs 2330.000 millions registering a growth of 43.4% over the corresponding period last year. Bank's Capital Adequacy Ratio stood at a healthy level of 13.92% as on September 2007. The Bank has added 43 branches during the half year ended 30th September 2007, to raise the Branch Network to 1368, which stands at 1391 as on date. Shri Gupta informed that to augment its Non Interest Income, the Bank will continue to leverage its network for distribution of third party products like bancassurance, mutual funds and government business.
Shri A.V. Muralidharan, CMD of ECGC informed that ECGC is the 5th largest credit insurer of the world in terms of coverage of national exports. ECGC is recognized as a specialized institution by Insurance Regulatory Development Authority operating exclusively in the field of credit insurance. For the benefit of the exporters and Banks ECGC has now started issuing customized specific covers to the banks and exporters termed as tailor made policies. ECGC has now widened its marketing channels through Bancassurance. ECGC operates through five regional offices and 51 branch offices all over India to service exporters and banks. ECGC is striving to strengthen relationships and improve its delivery service to its customers.
Performance
Highlights for the year ended 31st March, 2008
Business crosses Rs 750000.000 millions
Deposits up by 26.4%.
Advances up by 24.3%.
Net Profit rises to Rs 3190.000 millions
Gross NPAs come down to 2.70%.
Net NPAs decline to 1.10%.
Pays Rs 459.700 millions as dividend to the Central Government.
70% business covered under Core Banking Solution.
On 24th April 2008, the Board of Directors of the Bank took on record the Annual Financial Results for the year ended 31st March, 2008.
While announcing the financial results for the FY 2007-08 at Bank’s headquarters in Kolkata today, Shri P.K. Gupta, CMD of the Bank, said that an amount of Rs. 459.700 millions has been declared as Dividend to be paid to the Government. This was the third consecutive year that the Bank has paid dividend to the Government since year 2005-06.
As on 31st March 2008, the Banks’ Business has crossed an important milestone of Rs 750000.000 millions by reaching at the level of Rs 751230.000 millions. The Deposits registered an annual growth of 26.4% to reach at Rs 469710.000 millions whereas the Advances grew by 24.3% to reach at Rs 281520.000 millions. The Credit Deposit Ratio stood at 60%.
Shri Gupta informed that United Bank of India has shown a significant improvement in its Business performance over a period of three years from March 2005 to Mach 2008. The Total Business of the Bank has clocked a growth of 102% from Rs 371870.000 millions as on Mach 2005 to Rs 751230.000 millions as on Mach 2008. During the same period, the Deposits have grown by 85.3% from Rs 253480.000 millions to Rs 469710.000 millions whereas the Advances have grown by 137.8% from Rs 118390.000 millions to Rs 281520.000 millions. As a result, the Credit Deposit Ratio has improved fro 46.7% to 60% during the three-year period.
Shri Gupta highlighted the fact that there has been a perceptible improvement in the quality of Credit Portfolio of the Bank between March 2005 and March 2008. The Gross NPA Ratio has sharply declined from 6.14% as on March 2005 to 4.66% as on March 2006 to 3.60% as on March 2007 and further to 2.70% as on March 2008. Equally impressive improvement was registered in the Net NPA Ratio which has declined from 2.43% as on Mach 2005 to 1.95% as on March 2006 to 1.50% as on March 2007 and further to 1.10% as on March 2008. The fact that despite fresh generation of NPAs aggregating Rs 9870.000 millions during the three-year period ended 31st March 2008, the Gross NPAs in absolute figure have risen by just Rs 350.000 millions from Rs 7260.000 millions as on mach 2005 to Rs 7610.000 millions as on March 2008 indicate that the Bank’s efforts on NPA Management have been quite effective.
In order to boost up the financial strength of the Bank’s Balance Sheet, the bank has created a Floating Provision of Rs 1610.000 millions (Rs 1100.000 millions during 2007-08) against NPAs in accordance with the recent RBI guidelines. Consequently, NPA provision as on March 2008 stood at Rs 4550.000 millions with Coverage Ratio of 59.8%. The Slippage Ratio, i.e. Ratio of Fresh NPAs to Opening Standard Assets has improved to 1.49% during the year 2007-08 as against 2.66% during the previous year.
The Bank’s Priority Sector Advances stood at Rs 9601.000 millions accounting for 42.4% of the Adjusted Net Bank Credit against national target of 40%. The Retail Credit has risen by 33.4% from Rs 53640.000 millions as on March 2007 to Rs 71580.000 millions as on March 2008. Within the Retail Credit, the Housing Loans have registered a growth of 36.2% from Rs 30460.000 millions as on March 2007 to Rs 41480.000 millions as on March 2008 and Education Loan by 23.1% from Rs 2250.000 millions to Rs 2770.000 millions during the same period. Share of Retail Credit in Total Credit has gone up from 23.7% as on March 2007 to 25.4% as on March 2008.
Speaking about Profitability, Shri Gupta informed that the Bank’s Net Profit has gone up by 19.5% from Rs 2672.800 millions during 2006-07 to Rs 3189.500 millions during 2007-08. Net Profit has been arrived at after providing for a liability of Rs 820.000 millions under AS-15, depreciation on Investments to the tune of Rs 730.000 millions and a Floating Provision of Rs 1100.000 millions. The Net worth of the Bank has risen significantly from Rs 15960.000 millions as on March 2005 to Rs 26610.000 millions as on March 2008, registering a growth of 66.7% over a period of 3 years. The Bank’s Capital Adequacy Ratio stands at a comfortable level of 11.88% as on March 2008. The Tier-I Capital accounts for 6.74% whereas the Tier-II Capital accounts for 5.14%.
Speaking about Productivity, Shri Gupta informed that the Business Per Branch has been showing consistent improvement year-over-year. From Rs 283.900 millions as on Mach 2005, the Business Per Branch has improved to Rs 343.000 millions as on March 2006 to Rs 451.400 millions as on March 2007 and further to Rs 536.200 millions as on March 2008. The Business Per Employee has also shown an equally impressive growth from Rs 20.800 millions as on March 2005 to Rs 25.400 millions as on March 2006 to Rs 35.000 millions as on March 2007, and further to Rs 46.300 millions as on March 2008.
The Bank has been making sincere endeavours to discharge its obligations in relation to the Agenda of Financial Inclusion. The Bank has received Awards from Khadi and Village Industries Board for ranking First in Lending under Rural Employment Generation Programme (REGP) for Eastern and North-Eastern Zones for the year 2006-07. The Bank has set up Rural Development & Self Employment Training Institutes (Rudsetis) at Rajpur, 24-Parganas (South) in August 2007 and at Belur, Howrah in March 2008. The Foundation for the third Rudseti at Amarkanan, Bankura (West Bengal) has also been laid on 14th April 2008.
Elaborating on the progress made on the Technology front, Shri Gupta informed that the Bank has rolled out Core Banking Solution (CBS) at 379 of its branches covering 70% of business in line with its Plan in this regard. The Bank has 178 ATMs of its own, although its customers can use more than 20,000 ATMs under NFS Network and cashtree arrangement. The Bank provides Internet Banking facility, christened as united online at 250 branches along with the facility of e-Payment of Service Tax and Excise Duties, etc. The Bank’w own Virtual Private Network now covers 730 branches as against 409 branches as on March 2007. The Real Time Gross Settlement (RTGS) is available in as many as 133 branches.
With a view to attaining Pan-India presence, the Bank has expanded its branch network which stood at 1401 as on March 2008 as against 1325 as on March 2007. The Bank expects to open 65 more branches to increase its network to 1466 branches by March 2009.
To augment its Non Interest Income which has registered an impressive growth of 33.9% from Rs 3476.800 millions during the year 2006-07 to Rs 4654.900 millions during the year the Bank will continue to leverage its network for distribution of third party products, like bancassurance (Life and Non-Life), Mutual Funds and Government business, etc. Under bancassurance, the Bank has introduced a number of new customized products, such as United Child Solutions and United Health Solutions in collaboration with Tata-AIG Life Insurance Company Ltd. and Silver Health Scheme in collaboration with Bajaj Allianz.
The Bank has already launched its Depository Services under the brand name, United Demat. The Bank has also launched its Cash Management Services, viz. United Global Cash Management Services as on 29th March 2008 for its corporate and institutional customers.
Speaking about the plan for the current financial year, i.e. 2008-09, Shri Gupta informed that it envisages a growth of 20% in its Total Business to reach at Rs 900000.000 millions. Within the Total Business, the Deposits were expected to grow by 18% to reach at the level of Rs 555000.000 millions and Advances by 22% to reach at the level of Rs 345000.000 millions. The Bank intends to add another 65 Branches to its network to take it to 1466 from 1401 as on March 2008. The Bank would aggressively pursue the roll-out of CBS Branches so as to put 900 Branches covering 92% of its business under Core Banking Solution by March 2009. The Virtual Private Network would cover 950 branches as against 730 as on March 2008, whereas the number of ATMs would go up to 225 as against 178 at present.
CMT REPORT [Corruption, Money laundering
& Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
The market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
The
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is
not known to have contravened any existing local laws, regulations or policies
that prohibit, restrict or otherwise affect the terms and conditions that could
be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 43.17 |
|
UK
Pound |
1 |
Rs. 86.46 |
|
Euro |
1 |
Rs. 68.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
56 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial condition (40%) Ownership background
(20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses
an extremely sound financial base with the strongest capability for timely payment
of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses
adequate working capital. No caution needed for credit transaction. It has
above average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors
will not cause fatal effect. Satisfactory capability for payment of interest
and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse
factors are apparent. Repayment of interest and principal sums in default or
expected to be in default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute
credit risk exists. Caution needed to be exercised |
Credit not recommended |