UBI targets Rs 500 cr net profit

United Bank of India hopes to clock a Rs 500 crore net profit in 2005-06 against a total business figure of Rs 50,000 crore. The bank is also likely to wipe off its entire Rs 284 crore of accumulated losses by the first half of the current fiscal.

Talking to newspersons at the sideline of a programme to announce its tie-up with Western Union through Weizmann Forex, P K Gupta, chairman, United bank of India said, "We have targeted a total net profit of RS 500 crore against Rs 300 crore last year and our advances would touch Rs 18,000 crore while deposits would be Rs 32,000 crore."

The bank has also targeted a hike in credit-deposit ratio to 55 per cent from the present level of 42 per cent.

When asked about the possibility of an Initial Public Offer to offload a portion of the government's stake, Gupta said, "We have not firmed up any plans of tapping the capital market," he said.

The banks first need to be strengthened and its accumulated losses wiped off,. Only then would be request the government to allow an IPO at UBI," he explained.

Gupta also informed that the bank had firmed up plans of opening a representative office at Dhaka to cash in on business in the country.

Talking about the tie-up with Western Union, Gupta said it would help the bank earn foreign exchange and provide a boost to its deposit base.

The bank has in fact revised its business targets upwards from Rs 45,000 crore previously to Rs 50,000 crore now. The original target was to touch a total business of Rs 50,000 crore by 2006-07.