Ubi Net Loss Declines To Rs 113 Crore

The Calcutta-based United Bank of India has recorded an operating loss of Rs 54.98 crore in fiscal 1996-97 belying expectations of an operating profit after last years operating loss of Rs 50.24 crore.

However, the net loss figure came down by Rs 120.82 crore from Rs 234.46 crore loss last year to Rs 113.64 crore in fiscal 1996-97. The total income of the bank increased by 18.6 per cent over fiscal 1995-96 to Rs 1104 crore.

The capital adequacy ratio (CAR) improved from 3.5 per cent to 8.27 per cent in 1996-97. Senior bank officials said that this improvement was mainly on account of the Rs 338 crore recapitalisation received by the bank in the last fiscal.

Deposits recorded a quantum jump of 17.7 per cent from Rs 8,790 crore in March 1996 to 10, 346 crore in March 1997. Investments in fiscal 1996-97 were to the tune of Rs 6,132 crore while gross advances increased by 6.3 per cent from Rs 2,851 crore to Rs 3,862 crore.

Interest earned from advances was Rs 384 crore, and income from investments was Rs 575 crore. Interest paid on deposits was Rs 789 crore.

Share of priority sector credit in net credit stood at 45.1 per cent while ratio of net NPA to net credit was 19.2 per cent.

The board yesterday passed a resolution to merge the 24 Parganas Pakapole branch with the Polerhat branch.

Sources said that this is a signal of things to come, and more branch mergers may be in the offing.

The board is in the process of formulating a business plan for fiscal 1997-98. Sources said that the NPA reduction target for the bank in fiscal 1997-98 is Rs 300 crore while the deposit growth target is 20 per cent. Board members will also be monitoring the growth in deposits, the recovery of NPAs and the interest spread among other things on a monthly basis