United Bank of India fell 1.03% to Rs 24 at 14:47 IST on BSE after Archana Bhargava resigned as chairperson and managing director of the bank with effect from 20 February 2014.
The announcement was made during trading hours today, 21 February 2014.
Meanwhile, the BSE Sensex was up 123.56 points, or 0.60%, to 20,660.20.
On BSE, so far 2.73 lakh shares were traded in the counter, compared with an average volume of 99,882 shares in the past one quarter.
The stock hit a low of Rs 23.40 so far during the day, which is also a record low for the counter. The stock hit a high of Rs 24.50 so far during the day. The stock hit a 52-week high of Rs 69.25 on 20 February 2013.
The stock had underperformed the market over the past one month till 20 February 2014, sliding 24.57% compared with the Sensex's 3.15% fall. The scrip had underperformed the market in past one quarter, falling 32.17% as against Sensex's 0.48% decline.
The small-cap company has an equity capital of Rs 554.75 crore. Face value per share is Rs 10.
United Bank of India said that Ministry of Finance vide its letter dated 21 February 2014 has communicated its acceptance to the application for voluntary retirement of Archana Bhargava, chairperson and managing director (CMD) of the bank with effect from 20 February 2014.
In absence of the CMD, both the executive directors shall jointly remain in charge of the bank, till such time that a regular incumbent takes over the charge of CMD, United Bank of India said in a statement.
According to reports, Archana Bhargava resigned at a time when the bank is struggling with mounting losses, deteriorating credit quality and low capital adequacy ratio.
United Bank of India has been under pressure after reports on non-performing assets (NPA) mismanagement surfaced earlier in this week.
United Bank of India reported a net loss of Rs 1238.08 crore in Q3 December 2013 as against net profit of Rs 42.20 crore in Q3 December 2012. Total income rose 14.9% to Rs 2986.80 crore in Q3 December 2013 over Q3 December 2012.
United Bank of India's ratio of gross non-performing assets (NPAs) to gross advances spurted to 10.82% as on 31 December 2013, from 7.52% as on 30 September 2013 and 4.42% as on 31 December 2012. The ratio of net NPAs to net advances surged to 7.44% as on 31 December 2013, from 5.39% as on 30 September 2013 and 2.22% as on 31 December 2012.
United Bank of India's provisions and contingencies spurted 312.9% to Rs 1857.83 crore in Q3 December 2013 over Q3 December 2012. Provision coverage ratio works out to 47.9% as on 31 December 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 9.01% as on 31 December 2013 as against 9.48% as on 30 September 2013.
The Government of India (GoI) holds 88% stake in United Bank of India (as per the shareholding pattern as on 31 December 2013).
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