Full-Time Chief Still Eludes United Bank

One of the larger public sector banks -- United Bank of India (UBI) will become headless following the retirement of its executive director S Vadival in August this year.

Vadival is at present the acting chairman of the bank following Biswajit Choudhury's end of tenure on April 3. Industry personnel seem to be in the dark with regards to Vadival's replacement.

Two months after the chairman's end of tenure at UBI, the bank is still without any chairman, although there are rumours that the chief of State Bank of Bikaner and Jaipur will take over, but notification to this effect are yet to come.

Although an advertisement in this regard has already been made, the bank is still awaiting a formal declaration.

Sources say that there are other contenders who are low on the priority list. Decisions on recruitment is influenced by various considerations and the final decision is generally taken few days prior to the end of tenure of the incumbent chief.

United Bank is passing through troubled times, although it has reported operating profits for three consecutive years, huge accumulated losses and strong opposition from unions have made going at the bank very difficult. The operating profit figure this year is expected at Rs 140 crore.

Nevertheless, outgo of funds for its ongoing voluntary retirement scheme will cost the bank Rs 300 crore and another Rs 75 crore for outstandings to its employees. The bank declared a wage revision in 1997, and arrears to the tune of Rs 75 crore is yet to be released by the bank.

Further, the bank in a drive to rationalise its work force is being forced to close down 15 branches in West Bengal, Assam, Manipur and Bihar, a few of which are profit making. Closure of bank branches, they say, will severely affect customer relation.