| Kolkata-based United Bank of India (UBI) has started negotiations with Asset Reconstruction Company of India (Arcil) to sell sticky assets worth about Rs 50 crore in the current financial year.
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| Arcil has already completed its due diligence exercise of the assets.
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| P K Gupta, chairman and managing director, UBI, said, “We are keen to sell some of our non-performing assets (NPAs) at an acceptable price. We are looking at 20 accounts amounting to Rs 50 crore.”
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| These 20 accounts comprise various sectors such as tea, hospitals, hotels and textiles.
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| UBI is aiming at lowering its gross NPAs to 3.65 per cent and net NPAs to 1.24 per cent by the end of 2006-07. At the end of December 31, 2006, its net NPAs stood at 1.47 per cent or Rs 297 crore, down from 2.19 per cent a year ago, while gross NPAs were at 3.71 per cent or Rs 767 crore, down from 4.83 per cent during the period under review. The bank is also making efforts to increase non-interest income by offering a complete package of financial instruments to its customers.
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| “The bank has already applied to the Sebi for approval to open demat accounts for its customers,” Gupta said.
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| UBI has also started offering net banking facility to its customers through the ‘United Online’ platform.
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| The bank has recently started talking to broking houses to offer online trading facility to its customers.
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| “We will be able to offer the online trading facility to our customers through the broking houses shortly,” he said.
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| The bank has also sought Sebi approval for disbursal of MIN (mutual fund identification number) required for investors investing Rs 50,000 or more in any fund. Currently, CDSL is the sole agency for distribution of MIN.
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| “We have applied to the Sebi for disbursal of MINs and hope to get it soon,” Gupta said. UBI today entered into an MoU with Franklin Templeton to distribute the latter’s products to its customers.
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| “The tie-up will increase our non-interest income. Currently, the bank’s non-interest income stands at 16 per cent of total income. We intend to take non-interest income to 18 per cent of total income by March 2007,” Gupta said. It already has tie-ups with UTI AMC and HDFC AMC for distribution of products.
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| UBI bank has 13.5 million customers. It has over 1,300 branches and currently offers mutual fund products in 50 branches.
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| It hopes to sell MF products in 250 branches by March 2007.
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| The bank is also increasing total number of AMFI-certified employees to 135 from the present 55 to ramp up sales of its MF products. |
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