UBI plans to restructure capital

Kolkata, June 14: United Bank of India (UBI) is planning to restructure its Rs 1,532 crore equity capital.

Bank's chairman and managing director P K Gupta told reporters on the sidelines of a FICCI sponsored Banking Conclave that it is preparing a business plan for the capital restructuring to be placed before the board for approval by this month end.

Mr Gupta said the idea is to covert the equity into alternative forms that qualify for capital funds.

Following the Board's approval the Bank would approach the government and the RBI for approval of the capital restructuring process, the Bnk's chairman said.

He said the Bank had adequate capital adequacy ratio (CAR) of 13.12 per cent and the capital restructuring has nothing to do with the qualification of the Basel II norms specified by the RBI.

Gupta said UBI is aiming at Rs 55,000 crore business this year as compared to Rs 45,000 crore last year and the credit growth is expected to be in the region of 28 per cent.

The CMD said the UBI has increased its benchmark prime lending rate (BPLR) to 11.25 per cent from 10.75 per cent following the rise in the interest costs.

UNI