UBI angles for Rs 500 crore net profit in current fiscal

United Bank of India (UBI) is eyeing Rs 400-500 crore net profit during the current financial year and is expected to wipe off its entire accumulated loss by the end of March 2005.

The erstwhile weak bank has no immediate plans for public offer but has ambitious growth plans for the future, UBI's outgoing chairman Madhukar said at a press conference.

"UBI is the only bank to have turned around without the advice of a consultant or government assistance. The bank, which posted a net loss of Rs 262 crore in 2000-01, posted Rs 305 crore net profit in the last fiscal and Rs 242 crore in the nine months ended December 2003," he said.

Although, UBI once required a capital infusion of Rs 1,000 crore, Madhukar said the bank was in the process of bringing down its accumulated losses aggregating Rs 1,660 crore.

During the last financial year, the bank reduced its accumulated losses by Rs 500 crore and similar amount would be wiped off this fiscal.

"Next fiscal, the bank would be able to wipe out its accumulated losses completely," Madhukar said.

"This was possible after the bank recovered Rs 1,200 crore on account of inter-branch unreconciled items," he said.