 "UBI plans to raise Rs 1,000 crore via QIP")
“We are looking to mop up around Rs 1,000 crore through a QIP in the next three to four months. We will also approach the government to infuse capital but that may take time as we are aware that capital infusion takes place mostly during end of financial year,” said CMD Archana Bhargava.
Currently, the bank's capital adequacy ratio stands at 11.66%. The PSU bank also has plans to set up seven to eight offices in foreign countries.
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UBI today reported a dip of around 79.11% in its net profit for the final quarter of financial year 2012-13 at Rs 31.18 crore compared to Rs 149.29 crore in the year ago period. The net profit tanked primarily because of higher provisioning during the quarter under review. The bank made provisioning of Rs 758.80 crore in the quarter compared to Rs 306.65 crore in the same period a year ago.
Gross non-performing assets (NPAs) for the bank stood at 4.25% at the end of March 2013, compared to 3.41% in the previous fiscal. Net NPAs for the PSU bank jumped to 2.87% during the year from 1.72% at the end of March 2012. The bank made slippages worth Rs 1,075 crore during the quarter under review and most of it came from large industries.
Going forward, the CMD said that the bank would be stringent in lending to capital intensive sectors. “We will be cautious towards lending in sectors like power, real estate etc. A tightrope walk will be on the cards in the next quarter,” she said.
Net profit for the full fiscal stood at Rs 392 crore compared to Rs 632 crore in fiscal 2011-12, showing a dip of 38%.
Net interest margin (NIM) for the bank stood at 2.67% as on March 2013, compared to 3.11% in the fiscal 2011-12. Bhargava said she was aiming to take it to 3% by the end of this fiscal.
The bank is aiming to clock in a total business of Rs 2,00,000 crore in the current fiscal.