United Bank set for lower profit growth

United Bank of India (UBI) is likely to register a reduced growth in net profit at 3 per cent "" around Rs 310 crore in 2003-04 against Rs 305 crore in the previous fiscal. Last year, UBI registered a 156 per cent rise in bottomline.

"The reduction in growth in net profit has been mainly due to large floating provisions done by the bank to meet contingent liabilities," said sources close to the development.

The public sector bank is also likely to register a Rs 650 crore operating profit against Rs 556 crore in the previous fiscal.

Last year the bank registered a 134 per cent rise in operating profits. The growth this year is likely to be around 16 per cent.

On the business front the bank is likely to register a Rs 30,000 crore business against Rs 27,100 crore achieved in the previous fiscal.

Meanwhile, the bank which was toying with the idea of approaching the capital market with a Rs 100 crore initial public offer has shelved its plans.

The bank did not intend to float a public issue as its capital adequacy ratio was more than comfortable at 16 per cent.

"At 16 per cent CAR we do not want to approach the capital market for we at present want to create more assets at this adequacy. We are comfortably placed to pursue our business plans with the same level of capital base that we have," its chairman, had earlier said.