MIRA INFORM REPORT

 

 

Report Date :

16.03.2012

 

 

IDENTIFICATION DETAILS

 

Name :

UNITED BANK OF INDIA

 

 

Registered Office :

16, Old Court House Street, Kolkata - 700 001, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

1950

 

 

Capital Investment / Paid-up Capital :

Rs.11444.206 Millions

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALU00376F

 

 

Legal Form :

Public Sector have owned by Government of India

 

 

Line of Business :

Banking Business

 

 

No. of Employees :

15062 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (69)

 

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 200870000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established bank of government of India. Available information indicates high financial responsibility of the bank. Trade relations are reported as fair. Business is active. Payments are regular and as per commitments.

 

The bank can be considered good for normal business dealings at usual trade terms and conditions. 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCATIONS

 

Registered Office :

16, Old Court House Street, Kolkata United Bank of India Limited - 700 001, West Bengal, India

Tel. No.:

91-33-22487470

Fax No.:

91-33-22480897

E-Mail :

utbihoc@vsnl.com

Website :

http://www.unitedbankofindia.com

 

 

Head Office :

11, Heamant Basu Sarani, United Tower, Kolkata – 700 001, West Bengal, India

Tel. No.:

91-33-22487711/ 22487472

Fax No.:

91-33-22489391

E-Mail :

gmrecv@unitedbank.co.in

investors@unitedbank.co.in

 

 

Branch Office :

 

Contact telephone Nos.

Bhubaneswar, Orissa

Tel: 91-674 2531173 / 2530092

Fax:   91-674 2405773

Giridih, Bihar

Tel: 91-6532-222023 / 222099
Fax:   91-6532 222099

Madras, Tamil Nadu

Tel: 91-44-25340143 / 25342444 / 25341337 / 25341097

Fax: 91-44 25340580

Ernakulam, Kerala

Tel: 91-484-2355185 / 2361523

Hyderabad, Andhra Pradesh

Tel: 91-40-24756811 / 24756994 / 24755486

Fax: 91-40-2475 6811

Hotel Oberoi Towers,

Mumbai, Maharashtra

Tel: 91-22-22025406 / 22024723
Fax: 91-22 22821803

Park Street, Calcutta

Tel: 91-33-22293816 / 22299516
Fax: 91-33-22246 9604

Oberoi Intercontinental Hotel, New Delhi

Tel: 91-11-24395133 / 24363030
Fax: 91-11-24395064

Ahmedabad, Gujarat

Tel: 91-79-25506957 / 25506274 / 25507035

Fax: 91-79-25506272

Calcutta, West Bengal

Tel: 91-33-22208460 / 22202278
Fax: 91-33-2220 0842

Fax 91-33-2220 0842

Karimganj, Assam

 

Shillong, Meghalaya

Tel: 91-364-223172 / 226354
Fax: 91-364 226354

Udaipur, Rajasthan

Tel: 91-294-2528152 / 2529281
Fax: 91-294-2528152

Jaipur, Rajasthan

Tel: 91-141-2312694

Fax: 91-141-2318144

Guwahati, Assam

Tel: 91-361-2540043 / 2540042 / 2540041

Fax: 91-361-2540041

Nehrunagar, Agra, Uttar Pradesh

Tel: 91-562-254379

Fax: 91-562 2356243

Mount Road, Tamil Nadu

Tel: 91-44-28523012

Fax: 91-44-2852 3012

Bangalore, Karnataka

Tel: 91-80-2265626 / 2262910

Fax: 91-80-225 0412

Moradabad, Uttar Pradesh

Tel: 91-591-2313335

Coimbatore, Tamil Nadu

Tel: 91-422-2397889

Jullundhar, Punjab

Tel: 91-181-223928

Moreh, Manipur

Tel: 91-38542 275

Salt Lake Branch, Kolkata

Tel: 91-33-23373792

Fax: 91-33-23342099

Overseas Branch, Kolkata

Tel: 91-33-22101890 / 22430068

Fax: 91-33-22485552

Overseas Branch, Mumbai

Tel: 91-22-22836790 / 22871503

Fax: 91-22- 22040120

Overseas Branch, New Delhi

Tel: 91-11-23271638 / 23275901

Fax: 91-11-23271486

Electronic City, Bangalore

Tel: 91-80-28520014

Fax: 91-80-28528350

Chandigarh Branch, Chandigarh

Tel: 91-172-22704256

Fax: 91-172-22727934

Netaji Market Branch, Malda, West Bengal

Tel: 91-3512- 2220352

Fax: 91-3512- 2252617

Siliguri Branch, Siliguri, West Bengal

Tel: 91-353-22534370

Fax: 91-353-22436285

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. Saumen Majumder

Designation :

Director

 

 

Name :

Mr. Saumitra Talapatra

Designation :

Director

 

 

Name :

Dr. Naina Sharma

Designation :

Director

 

 

Name :

Mrs. Surekha Marandi

Designation :

Director

 

 

Name :

Mr. Bhaskar Sen

Designation :

Chairman and Managing Director

 

 

Name :

S.L. Bansal

Designation :

Executive Director

 

 

Name :

Mr. Srenik Sett

Designation :

Director

 

 

Name :

Mr. Sanjeev Kumar Jindal

Designation :

Director

 

 

Name :

S L Bansal

Designation :

Executive Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Dabjiban Basu

Designation :

General Manager

 

 

Name :

Mr. Bikramjit Shom

Designation :

Company Secretary

 

 

Name :

Mr. Rajan Kumar Mohanty

Designation :

General Manager

 

 

Name :

Mr. Ambarisha Nanda

Designation :

General Manager

 

 

Name :

Mr. Pranab Kumar Roy

Designation :

General Manager

 

 

Name :

Mr. Pradip Kumar Dutta

Designation :

General Manager

 

 

Name :

Mr. Pratap Kumar Ghosh

Designation :

General Manager

 

 

Name :

Prabir Kumar Dutta

Designation :

General Manager

 

 

Name :

Mr. Samar Sengupta

Designation :

General Manager

 

 

Name :

Mr. Uma Ranjan Bhattacharya

Designation :

General Manager

 

 

Name :

M Sekhar

Designation :

General Manager

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Banking Business

 

GENERAL INFORMATION

 

No. of Employees :

15062 (Approximately)

 

 

Bankers :

Reserve Bank of India

 

 

 

Banking Relations :

--

 

 

Statutory Central Auditors :

 

Name :

  • H S Rustagi and Company
  • George Read and Company
  • D K Chhajer and Company
  • M Choudhury and Company
  • M C Bhandari and Company
  • Ramesh C Agarwal and Company

 

 

Auditors :

 

Name :

S. Ganguli and Associates

Chartered Accountants

 

 

Name :

Maheshwari and Associates

Chartered Accountants

 

 

Associates:

  • Assam Gramin Vikash Bank
  • Bangiya Gramin Vikash Bank
  • Manipur Gramin Bank
  • Tripura Gramin Bank

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2200000000

Equity Shares

Rs.10/- each

Rs.22000.000 Millions

80000

Cumulative Preference Share

Rs.100000/- each

Rs.8000.000 Millions

 

Total

 

Rs.30000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

344420621

Equity Shares

Rs.10/- each

Rs.3444.206 Millions

80000

Cumulative Preference Share

Rs.100000/- each

Rs.8000.000 Millions

 

Total

 

Rs.11444.206 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

11444.206

8664.308

17824.308

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

38772.566

30364.959

12953.312

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

50216.772

39029.267

30777.620

LOAN FUNDS

 

 

 

1] Deposits

778448.004

681803.219

545359.007

2] Borrowings

28865.359

9153.381

4567.657

TOTAL BORROWING

807313.363

690956.600

549926.664

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

857530.135

729985.867

580704.284

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8188.705

6509.970

6242.151

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

262589.463

260677.360

179242.148

DEFERREX TAX ASSETS

0.000

0.0000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Cash & Balances with Reserve Bank of India

59431.524

47070.182

45322.698

 

Balance with Banks & Money at call & short notice

13845.874

16707.800

18779.414

 

Other Current Assets

21325.319

15784.185

16885.272

 

Loans & Advances

535024.371

423300.399

353935.455

Total Current Assets

629627.088

502862.566

434922.839

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Current Liabilities & Provisions

42875.121

40064.029

39702.854

Total Current Liabilities

42875.121

40064.029

39702.854

Net Current Assets

586751.967

462798.537

395219.985

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

857530.135

729985.867

580704.284

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Interest Earned

63414.570

52489.396

43118.671

 

 

Other Income

6370.533

5587.417

4908.583

 

 

TOTAL                                     (A)

69785.103

58076.813

48027.254

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Interest Expended

41721.128

38577.162

31503.620

 

 

Operating Expenses

12994.054

10741.193

9751.349

 

 

Provision and Contingencies

9830.203

5534.898

4925.189

 

 

TOTAL                                     (B)

64545.385

54853.253

46180.158

 

 

 

 

 

 

NET PROFIT

5239.718

3223.560

1847.096

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Statutory Reserve

1309.930

805.890

375.043

 

 

Transfer to Capital Reserve

187.297

221.691

1472.053

 

 

Proposed Dividend

 

 

 

 

 

- Equity

757.725

632.862

0.000

 

 

- PNCPS

586.558

150.000

0.000

 

 

Tax On Dividend

218.077

133.047

0.000

 

 

Transfer to Revenue Reserve

2180.131

1280.070

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

14.38

2.51

--

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Performance at a Glance

 

The total business of the Bank increased by Rs.208430.000 millions to reach Rs.1317790.000 millions at the end of the financial year 2010-11 from Rs.1109360.000 millions at the end of previous financial year 2009-10, recording a growth rate of 18.8%.

 

The total deposits of the bank have grown by Rs.96650.000 millions from Rs.681800.000 millions as on 31st March 2010 to Rs.778450.000 millions as on 31st March, 2011 registering a growth rate of 14.2%.

 

The Bank continued its prudent approach in expanding quality credit assets in line with its policy on Credit Risk Management. The total advances of the Bank increased by Rs.11178.000 millions from Rs.427560.000 millions as on 31st March, 2010 to Rs.539340.000 millions as on 31st March, 2011, registering a growth rate of 26.1%. During the year, focused attention was for lending to retail sector, agriculture, MSME and midsize corporate segments for expansion of credit.

 

During the year, performance of the Bank under recovery of NPAs was very good. During the year, the bank affected a cash recovery and up-gradation of NPAs of Rs.8561.100 millions compared to Rs.4854.4000 millions in the previous year. As a result, Gross NPA of the Bank reduced from Rs.13720.000 millions as on March 31, 2010 to Rs.13560.000 millions as on March 31, 2011 in spite of fresh slippages.

 

While the encouraging performance in different functional areas during the year 2010-11 resulted in increased earnings in absolute terms and the interest spread increased from 2.44% as on 31st March 2010 to 3.06% as on 31st March 2011

 

MANAGEMENT DISCUSSUION AND ANALYSIS

 

MONETARY POLICY OF THE RBI FOR 2010-11

 

The annual monetary policy for 2010-11 was set against a rather complex economic backdrop. The global economy continues to recover amidst ongoing policy support and improving financial market conditions. The recovery process was led by EMEs, especially those in Asia, as growth remained weak in advanced economies. Unemployment rate in the US and the Euro area were close to 10%. Prospects of economic recovery in Europe were clouded due to acute fi scal strains in some countries. In major advanced economies inflation expectations remained well-anchored. EMEs, especially in Asia inflation had been rising prompting central banks in some EMEs to begin phasing out their accommodative monetary policies.

 

The overall stance of monetary policy in 2010-11 was intended to:

 

Anchor inflation expectations, while being prepared to respond appropriately, swiftly and effectively to further build-up of inflationary pressures.

 

 Actively manage liquidity to ensure that the growth in demand for credit by both the private and public sectors is satisfied in a non-disruptive way.

 

Maintain an interest rate regime consistent with price, output and financial stability.

 

Bank rate was kept unchanged at 6.0%. The Cash Reverse Ratio (CRR) of scheduled banks was increased by 25 basis points from 5.7% to 6.0% of their net demand and time liabilities (NDTL). The Repo Rate was increased by 25 basis points from 5.0% to 5.25%. The Reserve Repo Rate was also increased by 25 basis points from 3.5% to 3.75%.

 

Some of the other measures included:

 

Based on the recommendations of the Working Group on Benchmark Prime Lending Rate and the suggestions from various stake holders, banks were mandated to switch over to the system of Base Rate from July 1, 2010.

 

Banks were urged to keep in view the recommendations made by the High Level Task Force on MSMEs and take effective steps to increase the flow of credit to the MSE sector, particularly to micro enterprises.

 

The RBI would discuss Financial Inclusion Plans with individual banks and would closely monitor their implementation.

 

It was proposed to constitute a Working Group with the representatives from the Government, the Reserve Bank, the SEBI, the IRDA and the IBA to recommend a roadmap for the introduction of a holding company structure for banks together with the required legislative amendment/ framework.

 

 In order to ensure that a consistent methodology is adopted by banks for Valuation Adjustment and Treatment of Illiquid

Positions, RBI proposed to constitute a Working Group with members from the Reserve Bank, FIMMDA, the IBA and a few banks to recommend an appropriate framework.

 

In order to facilitate smooth migration to International Financial Reporting Standards (IFRS), it was proposed:

 

To undertake a study of the implications of the IFRSs convergence process and also to issue operational guidelines as appropriate

 

To disseminate information through learning with a view to preparing banks and other entities to adhere to the roadmap

 

In view of certain safeguards such as escrow accounts available in respect of infrastructure lending, it was proposed that:

 

Infrastructure loan accounts classified as sub-standard will attract a provisioning of 15% instead of the current prescription of 20%. To avail of this benefit of lower provisioning, banks should have in place an appropriate mechanism to escrow the cash flows and also have a clear and legal first claim on such cash flows.

 

On a review of the extant regulatory norms and in order to facilitate better asset-liability management (ALM), it was proposed:

 

 To permit banks to formulate their own policies towards conversion of term deposits, daily deposits or recurring deposits in another term deposits with the same bank.

 

DOMESTIC ECONOMIC SCENARIO

 

Gross Domestic Product (GDP)

 

The Indian economy has shown resilience during 2010-11 and continues to go ahead. During 2010-11, the Indian economy expanded 8.5%, against earlier estimate of 8.6%, but up from 7.3% in 2009- 10. The global economic crisis brought down growth to 6.7% in 2008-09 from an average of over 9% in the preceding three years.

 

Indian economy improved considerably in 2009-10 and achieved a growth level of 7.3%. This gradual improvement in the GDP growth reflects the resilience of the Indian economy. In the first two quarters of the year GDP had grown by robust 8.9% and slowed down to 8.2% in the third quarter of the fiscal. In the fourth quarter growth was further slowed down to 7.8%. For the entire fiscal the economy expanded 8.5%.

 

Satisfactory production of the agriculture sector, sharp pick-up in private consumption and gross fixed capital formation are the major contributors to growth during 2010-11. While main impetus to the growth came from agriculture which benefited from a normal monsoon, the services sector maintained momentum in most of its segment in spite of some deceleration in the government spending related services. Private consumption and investment were the key drivers of growth in 2010-11. The year 2010-11 was marked by periods of volatility and tranquility in the Indian financial markets.

 

Global uncertainties as well as domestic development impacted Indian financial markets. However, it remained largely orderly, despite the challenges posed by persistent inflation and high current accounts deficit.

 

Sectoral Growth

 

Food grain production is set to touch an all time record of 235.88 million tonnes in 2010-11 as per the latest projection of the agriculture ministry. The prospect of agricultural performance during the year is brightened by the normal rainfall and higher sowing during the year. The areas sown during kharif 2010-11 was 7 percent higher than that of last year. The areas sown in rabi season till January 14, 2011 also had surpassed the levels achieved during the corresponding period of last year. Total kharif food grain production during 2010-11 is estimated to be 10.4 per cent higher than the previous year. The production forecast for rabicrop such as wheat, pulses, oil seeds, rice, cereals, sugarcane and cotton is raised by the agriculture ministry. The two most imported agricultural commodities – wheat and pulses are expected to rise from 80.8 and 14.66 million tonnes in the previous year to 84.27 and 17.29 million tonnes this year said to be highest recorded production ever. India’s agriculture sector is expected to grow at 5.4 per cent in 2010-11.

 

The performance of the industrial sector, in spite of some recent set back, continues to be satisfactory in the overall sense. Industrial growth based on index of Industrial Production (IIP) grows by 7.8 per cent during April 2010 – February 2011. The growth pattern has been volatile through the months of the current year with growth rate ranging between 1.6 per cent (December 2010) and 16.5 per cent (April 2010). In the financial year industrial out put recorded double – digit growth in April, May, July and October 2010. The year-on-year growth slipped to below 4 per cent from November 2010 mainly because of the high base. In December 2010 industrial growth slowed to a 20 month low of 1.6 per cent later revised to 2.5 per cent. In January 2011, industrial out put increased by 3.95 per cent from it’s year-ago level. Industrial growth moderated to 3.6 per cent in February, compared to 15.1 per cent a year ago, on account of a slowdown in the manufacturing and mining sectors. Growth has remained below 4 per cent for four months in a row from November 2010 to February 2011. Robust growth in capital goods and manufacturing sectors helped India’s industrial output to rebound to 7.3% in March after four months of lackluster performance. Though sequentially the industry growth in March was higher at 7.3%, it failed to match the impressive 15.5% growth in March 2010.

 

Inflation

 

Inflation has been a matter of concern during the year. Overall inflation as measured by the wholesale price index (WPI) dropped to 8.31 per cent in February 2011, from a high of 11 per cent in April 2010. Between April 2010 and February 2011, it was recorded at 9.3 per cent, as compared to 3 per cent in the corresponding period of 2009-10. The Reserve Bank revised its estimate upwards for the second time to 8 per cent for March-end. The WPI based headline inflation has moderated to 8.58 per cent in October, 2010 due to sharp moderation in food inflation. It is further moderated to eleven-month low of 7.48 per cent in November. But in December 2010 inflation showed upward trend and rose to 8.43 per cent. Inflation moderated to 8.23 per cent in January 2011 and again accelerated to 8.31 per cent in February 2011 driven by high food and fuel prices. The decline in food inflation to 8.60, the lowest in November 20 was due to the favourable base effect. Food inflation rose to 18.32 per cent for the week ended December 25, 2010 its highest level in 23-weeks. Economists attribute the spurt in food prices to limited supplies. The price is due to supply-side constraints. Inflation moderated to a single digit 9.52 per cent in the week ended February 2011. Food inflation fell to a four month low of 9.18 per cent for the week ended March 26, 2011 from 9.50 per cent in the previous week and 21.15 per cent a year ago. The rate of price rise during the week ended March 26 was the lowest since the week ending November 27, 2010 when it was recorded at 8.69 per cent. Considering the direction of the inflation rate movement RBI revised its projection of year-end inflation from 5.5 percent to 7.0 per cent and then again to 8 per cent. Inflation is still well above the comfort zone. It is expected that record grain production will keep food inflation stable in the coming months. But spiralling prices of crude oil in the international market could cast a shadow on the overall price situation.

 

Money Supply

 

Money supply (M3) growth inched up a tad to 16.5 per cent as at 25 February from 16.2 per cent a month ago against the RBI’s projection of 17% in its Annual Monetary Policy for 2010-11. This was due to a further pick-up in growth in term deposits, the largest component of money supply. Term deposits growth increased to 17.6 per cent as on 25 February 2011 from 17.1 per cent a month ago. Besides, currency with public continued to grow at around 20 per cent, contributing to the growth in broad money.

 

Banking and Interest Rates

 

Reserve Bank of India in its Annual Monetary Policy for the year 2010-11 projected 18 per cent growth in aggregate deposit and 20 per cent growth in non-food credit for Scheduled Commercial Banks. In the year 2010-11, aggregate deposits of Scheduled Commercial Banks (SCBs) registered a growth of 15.9 per cent to reach

`52,07,970 crore against a growth of 17.2 per cent in 2009-10.

 

The total credit of Scheduled Commercial Banks (SCBs) recorded a higher growth of 21.5 per cent to Rs.3942820.000 millions compared to 16.9 per cent growth during the year 2009-10. Due to higher expansion of credit and lower expansion of aggregate deposits, incremental CD Ratio stood at 97.5 per cent. Similarly, Credit Deposit

 

Ratio of Scheduled Commercial Banks stood at 75.7 per cent as on March 25, 2011 against 72.2 per cent a year ago. Non-food credit of Scheduled Commercial Banks expanded by 21.3 per cent to Rs.387700.000 millioms during 2010-11 against 17.1 per cent a year ago.

 

From the very beginning of the financial year 2010-11, Reserve Bank of India tightened Monetary Policy by raising CRR by 25 bpsto 6.0 per cent, Repo rate by 25 bps to 5.25 per cent and Reverse Repo rate by 25 bps to 3.75 per cent. CRR was raised w.e.f. 24th April 2010 with a view to absorb Rs.125000.000 millions from the system.

 

Subsequently, on review, RBI raised Repo rate and Reverse Repo rate by another 150 bps in six phases (25 bps in each phase) to 6.75 per cent and 5.75 per cent respectively w.e.f. 17.03.2011 to tame inflation.

 

As indicated in the Monetary Policy Statement of April 2010, the system of Base Rate came into effect on July 1, 2010. The transition from the Benchmark Prime Lending Rate (BPLR) system to the Base Rate system was smooth.

 

EXTERNAL SECTOR

 

Exports showed remarkable buoyancy in the last quarter of last fiscal. Maintaining a steady growth momentum, India’s merchandise exports exceeded the annual target of $200 billion and touched $245.86 billion in 2010-11. Total imports in the first 11 months (April 2010 to February 2011) of the fiscal grew 18 per cent to $305.2 billion from $258.7 billion. The current account deficit (CAD) was 3.1% of GDP for the first three quarters; CAD is now estimated to have moderated to around 2.5% of GDP for the full year, 2010-11 as compared with 2.8% for the year before 2009-10.

 

In October, 2010 exports rose faster than imports for the first time in the last three years to 21.3 per cent. In December India’s export showed a remarkable growth of 36.4 per cent from last year, highest in 33 months, while imports contracted by 11.1 per cent narrowing the trade deficit to $ 2.6 billion, the lowest in three years. In February, exports shot up 49.8 per cent over the same month last year and surpassed the $200 billion target for the fiscal year with a month to spare. Trade deficit (on customs basis) increased by 2.4% to $82 billion in 2010-11 (April-December) from $80.1 billion in the corresponding period of the previous year.

 

PERFORMANCE OF THE BANK: 2010-11

 

Performance Highlights

 

Total business at Rs.1317790.000 millions registered a y-o-y growth of 18.8%

 

Total deposits increased from Rs.68180.000 millions to Rs.778450.000 millions registering a growth of 14.2% on y-o-y basis

 

Total advances increased from Rs.427560.000 millions to Rs.539340.000 millions recording a growth of 26.1% on y-o-y basis

 

 Credit Deposit ratio stood at 69.3% at the end of March 2011

 

Gross NPA ratio declined to 2.51% from 3.21% last year

 

Net NPA ratio stood at 1.42% as against 1.84% a year ago

 

Operating profit stood at `1,506.99 crore up by 72.1%􀁺 Net profit up by 62.5% to Rs.5239.700 millions

 

 Return on Assets (RoA) stood at 0.66%

 

Capital Adequacy Ratio stood at 13.05%

 

 Business per employee increased to Rs.86.000 millions from Rs.71.400 millions last year

 

Total number of branches stood at 1597 as on 31st March 2011

 

Total number of ATMs of the Bank stood at 508 as on 31st March 2011

 

FINANCIAL INCLUSION

 

Being the SLBC Convener for West Bengal and Tripura states the Bank had allocated 7486 and 419 villages in West Bengal and Tripura states during the FY 2010-11, respectively amongst different banks.

 

For the Bank initial allocation were 1825 villages (having population of more than 2000) covering 11 states and one union territory (Andaman and Nicobar) by the respective SLBC banks? We, on approval of our Board, submitted the FIP to the RBI. Subsequently, due to relocation of villages in Manipur, Meghalaya, West Bengal and Orissa states, total allocation of villages stood revised at 1889. Out of the above, they have planned to open brick and mortar branch in 46 villages and remaining 1843 will be serviced through BC model using ICT( Information and Communication Technology) based solution.

 

As per the roadmap envisaged, the Bank was required to open banking outlets in 800 un-banked villages having population of more than 2000 by the end of FY 2010-11. As against the above target, the Bank has opened 17 brick and mortar branches and 855 villages were covered through BC model, thereby surpassing the target set.

 

Total enrolment in the above villages stood at Rs.0.200 millions. All the BC Agents are being given Technical and operational training before start of the enrolment. Till 31.03.11, 900 CSPs have been given training. Our R-SETI Rajpur has been accredited by the IIBF wherein 5-day training course of BFs are being organized.

 

During the FY 2010-11, 80 members of Farmers’ Club were trained and have cleared the IIBF exams.

 

During the year, the Bank has conducted 9 Workshops exclusively on Financial Inclusion wherein 207 Base Branch Managers and Nodal Officers of the implementing Regions have been imparted necessary training.

 

Apart from the above, the following initiatives were taken during the year:

 

Allowed relaxation in the selection criteria of the BC Agents CSPs to accommodate maximum no. of SHG women and young techno savvy male candidates;

 

 Introduced Incentive scheme for the viability of the BC Agents for Account Opening, scouting of quality loan proposals an􀁺 The Bank shall be engaging 300 retired Bank officers in phases who will supervise the functioning of BC Agents and assist the base branches. 10 retired Bank officers are also being engaged as Counsellors for increasing the fi nancial literacy/credit counseling in the FI villages;

 

Bank has set up 5 Financial Literacy and credit counselling centres (3 in West Bengal and 1 each in Tripura and Assam) to educate the people specially the rural masses about the banking products and services, benefits of institutional banking, to inculcate savings habit, to manage the debt with an ultimate object to boost financial inclusion;

 

In order to evaluate the performance of the field staff the Bank has modified Annual Performance Appraisal Reports by incorporating FI parameters.

 

Contingent Liability

 

 

Particulars

31.03.2011

31.03.2010

 

Rs. in Millions

Claims against the bank not acknowledged as debts

42.561

73.548

Liability for partly paid investments

241.917

223.988

Liability on account of outstanding forward exchange contracts

35881.404

55456.640

Guarantees given on behalf of constituents (net of cash margin) :

 

 

a) In India

25812.363

23813.223

b) Outside India

2802.521

3113.810

c) BG invoked but not paid

46.101

130.900

Acceptances, endorsements and other obligations (net of cash margin)

15837.191

14720.807

Other items for which the Bank is contingently liable

909.645

589.004

TOTAL

81573.703

98121.920

 


WEBSITE DETAILS:

 

PROFILE:

United Bank of India (UBI) 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 1484 branches, over Rs.545360.000 millions of deposits and Rs.357270.000 millions of gross advances as on 31-03-09. Presently the Bank has a three-tier organisational set-up consisting of the Head Office, 28 Regional Offices and 1510 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 30 districts in the States of West Bengal, Assam, Manipur 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 4 Regional Rural Banks (RRB) one each in West Bengal, Assam, Manipur and Tripura. These four RRBs together have over 1000 branches. United Bank of India has contributed 35% of the share capital/ additional capital to all the four RRBs in four different states.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 Kolkata, 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 Kolkata, Delhi, Mumbai and Chennai. The Bank has ATMs all over the country and having Cash Tree arrangement with 11 other Banks. 

The name of the RRBs, the location of the Head Office and the name of the present Chairmen are given in the following table:

Name of the RRB

Location of H.O.

Name of the Chairman

Bangiya Gramin Vikash Bank

Berhampur, W. Bengal

Sri Samar Sengupta

Assam Gramin Vikash Bank

Guwahati, Assam

Sri Ramdev Yadav

Tripura Gramin Bank

Agartala, Tripura

Sri Nilmani Gangopadhyay

Manipur Rural Bank

Imphal, Manipur

Sri Umesh Prasad Singh

Assam Gramin Vikash Bank has been constituted on 12th January, 2006 following Government of India's Notification amalgamating erstwhile 4 RRBs, viz., Pragjyotish Gaonlia Bank, Cachar Gramin Bank, Subansiri Gaonlia Bank and Lakhimi Gaonlia Bank in the State of Assam. Recently, on 21st February, 2007, Bangiya Gramin Vikash Bank has been constituted following Government of India's Notification amalgamating erstwhile 5 RRBs,viz., Gaur Gramin Bank, Mallabhum Gramin Bank, Sagar Gramin Bank, Nadia Gramin Bank and Murshidabad Gramin Bank in the State of West Bengal.

History

United Bank of India was constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 on July 19, 1969. The Head Office of the Bank was set up at 4 Clive Ghat Street (presently known as N. C. Dutta Sarani, Kolkata 700 001 which was shifted to its present location at 11 Hemanta Basu Sarani, Kolkata – 700001 in 1972 for operational efficiency.

United Bank of India is one of the 14 banks which were nationalised on July 19, 1969. On October 12, 1950, the name of Bengal Central Bank Limited (established in 1918 as Bengal Central Loan Company Limited) was changed to United Bank of India Limited for the purpose of amalgamation and on December 18, 1950, Comilla Banking Corporation Limited (established in 1914), the Camilla Union Bank Limited (established in 1922), the Hooghly Bank (established 1932) stood amalgamated with the Bank. Subsequently, other banks namely, Cuttack Bank Limited, Tezpur Industrial Bank Limited, Hindusthan Mercantile Limited and Narang Bank of India Limited were merged with the Bank.

Chairman and Managing Director

 

Shri Bhaskar Sen

 

Shri Bhaskar Sen has taken over the charge as  Chairman and Managing Director of United Bank of India w.e.f. 1st March, 2010. Prior to taking over charge of this new assignment, Shri Sen was the Executive Director of Dena Bank since November, 2007.

 

Shri Sen has been a career banker, having started his career with Union Bank in the year 1974 as a Probationary Officer. A first class honors graduate in Commerce and CAIIB (with a Topper Award), he is a professional banker with more than 35 years of experience in India and abroad, and exposure in all the areas of commercial banking like Foreign Exchange, Credit, International Banking, Gold Business, Treasury, Merchant Banking, Cash Management Services, etc.

He had been the head of various controlling offices and held positions of overall in-charge of International Banking Division, Gold Business, Merchant Banking and Cash Management Services. Also he had been in independent charge of Treasury.

He also served in the capacity of head of New Business including Overseas Expansion and Strategic Initiatives of Union Bank.

 

Shri Sen was also assigned in IBU International Finance Limited Hong Kong (A joint venture finance company owned by Indian Bank, Bank of Baroda and Union Bank of India) and was one of the resident Directors of the company.

 

He was on the Managing Committee of FEDAI and was also elected as Director in FIMMDA.

 


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 :

Our 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.

 

Our 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.50.22

UK Pound

1

Rs.78.64

Euro

1

Rs.65.54

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

69

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.