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UBI declares dividend to govt after a gap of 14 years

Written by: Staff
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Kolkata, May 05 (UNI) In a turnaround of fortunes, the United Bank of India (UBI) today announced payment of Rs 45.97 crores as dividend to the Union government for the first time after a gap of 14 long years.

Announcing this while declaring the financial results of the city based Bank for 2005-06, UBI Chairman and Managing Director P K Gupta said the Board of Directors of the Bank, which met here this morning, had formally approved the payment of 22.5 per cent dividend against the Bank's net profit of Rs 204.57 crores.

Stating that the Bank, which had also been able to wipe out its entire accumulated losses of Rs 278 crores during the last financial year, had paid its last dividend to the tune of Rs 0.50 crore way back in 1991-92. Later the Bank had faced acute financial crisis and had been declared as one the three weak public sector banks in the country (along with UCO Bank and Indian Bank) by the RBI in 1994-95.

Claiming that also for the first time in over a decade now the bank was able to plough back the entire profit margin into its Statutory reserve(Rs 51.14 crores), Capital reserves(Rs 17.62 crores) and Revenue reserves, Mr Gupta said also for the first time the total business of the Bank had crossed the Rs 45,000 crore margin,recording over 28 per cent growth from the previous year.

When his attention was drawn towards the possibility of UBI opting for an IPO as the Bank management has been toying with the idea for long with a view to further improving its capital adequacy ratio from around 13 per cent now, Mr Gupta said since their main emphasis was now to restructure the capital base of the Bank to the tune of Rs 700 crores, they would soon be applying to the RBI for the necessary process and was awaiting units proper guidelines to this effect.

He, however, refused to specify any timeframe within the current fiscal when fresh capital would be inducted into the bank.

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