UBI to double business to Rs 150,000 cr

United Bank of India is targeting to double its business to Rs 150,000 crore by 2011 and has roped in Indian Institute of Management, Calcutta to formulate a mid-term strategic plan.

"Our total business by the end of this fiscal would be around Rs 75,000 crore and we are planning to double it in another three years time. At present, our team is working along with IIM Calcutta on the quantitative as well as the qualitative aspects of what would be required to support our expansion plans," UBI chairman and managing director PK Gupta said. The bank is hoping to see its credit portfolio grow 25 per cent during this financial year.

On the government's farm loan waiver scheme, Gupta said, there was confusion regarding certain aspects, but the bank's Rs 150 crore portfolio was expected to be come under the purview of the scheme.

"We are still working on the exact number of accounts. We need further clarifications regarding certain aspects like in case of the term loans. We need to find out if the total overdue or the number of overdue installments should be taken into account. But roughly our claim should be around Rs 150 crore," Gupta said. UBI is trying to raise its non-interest income to cover for the declining net interest margins.

It is targeting a non interest income of Rs 400 crore by the end of the current financial year, up 45 per cent from Rs 180 crore in 2006-07.

"At present, there is a tremendous pressure on the NIM and unless we augment fee-based income it would be difficult to maintain the bottomline," Gupta said.

As part of the strategy, UBI planning third party distribution and today launched customized health insurance package for its customers.