United Bank to apply for overseas licences to RBI

The newly appointed CMD said, "Initially, bank will apply for 8 to 10 licences shortly"

United Bank of India (UBI) would apply for licences to the Reserve Bank for opening overseas branches as it has good capital adequacy ratio, the bank's newly-appointed Chairman and Managing Director Archana Bhargava said today.

"We will apply for overseas licences to RBI as bank's capital adequacy is good coupled with robust risk management practices," Bhargava told reporters here.

She said that the bank would like to open branches in South Africa and also focus on other BRICS nations.

"Initially, we will apply for 8 to 10 licences shortly," she said.

The bank at present has two representative offices in Myanmar and Dhaka.

Speaking about the bank's plans, she said that the bank would continue to focus on CASA (current account savings account) deposits, which stood at 40 per cent at present.

The bank is also aiming a turnover of Rs 2 lakh crore from the present Rs 1.75 lakh crore, while bank branches would be expanded from 1729 to 2000 during the current fiscal, Bhargava said.

UBI would recruit 2,000 people, including specialist officers in IT, legal, engineering and CAs, she said.

To a query, she said that bank would take up the rights issue matter with the government again.

Bhargava said that the bank is on an aggressive recovery path to reduce the NPAs.

UBI would open five e-lounges in Kolkata, Delhi, Mumbai, Chennai and Bangalore.