United Bank plans to go for IPO soon

The United Bank of India, in an effort to restructure its capital base,
plans to go in for an initial public offering (IPO) of an undisclosed amount soon.

The issue is aimed at converting Rs 1,232 crore of its equity base of Rs
1,532 crore into preferential share and perpetual bond.

The bank has already submitted its proposition to the Reserve Bank of India and is awaiting its decision.

United Bank has also targeted business worth Rs 55,000 crore, an increase of 23% over last year's business.

It will be opening 50 branches this year in north and central India.

RBI had allowed the bank to write off bad debt amounting to Rs 271.44 crore against capital.  This enabled the bank to pay divident after a gap of 14 years.