Government-owned United Bank of India (UBI) has paid Rs 53.29 crore as dividend for the year 2009-10 to the government of India, which holds 84.20 per cent in the bank.
The government in June infused Rs 250 crore as perpetual non-cumulative preference shares (PNCPS) to the bank, thus infusing about Rs 800 crore so far as tier I capital in the bank. The bank might take a call on raising tier II capital depending upon the requirement, said S L Bansal, executive director, United Bank of India.
Recently, the bank took shareholders' approval to raise up to Rs 350 crore as tier I capital and Rs 200 crore as tier II capital. The bank might look into raising more capital after September, said Bansal. The bank was looking at 22 per cent growth in credit and 20 per cent growth in deposits this financial year, he added. The capital adequacy ratio of the bank was 12.8 percent on March 31, 2010.