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United Bank of India is planning to raise Rs 1,000 crore through a qualified institutional placement (QIP) in the next three to four months. This would be over and above the rights issue the bank is planning.
Currently, the bank's capital adequacy ratio stands at 11.66 per cent. The PSU bank also has plans to set up seven to eight offices in foreign countries.
UBI on Tuesday reported a dip of around 79.11 per cent in its net profit for the final quarter of financial year 2012-13 at Rs 31.18 crore, compared with Rs 149.29 crore in the year-ago period. The profit tanked primarily because of higher provisioning.
The bank made provisioning of Rs 758.80 crore in the quarter compared with Rs 306.65 crore in the same period a year ago. Gross non-performing assets (NPAs) for the bank stood at 4.25 per cent at the end of March 2013, compared with 3.41 per cent in the previous financial year. Net NPAs jumped to 2.87 per cent from 1.72 per cent at the end of March 2012.
The bank made slippages worth Rs 1,075 crore and most of it came from large industries.
CMD Archana Bhargava said the bank would be stringent in lending to capital intensive sectors. She said, "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."
Net profit for the entire financial year stood at Rs 392 crore compared with Rs 632 crore in 2011-12, showing a dip of 38 per cent.
Net interest margin stood at 2.67 per cent against 3.11 per cent in 2011-12. Bhargava said she was aiming to take it to three per cent by the end of this financial year.
The bank is aiming to clock in a total business of Rs 2,00,000 crore in the current financial year.
