United Bank's new chief plans big push to profitability

By Our Staff Reporter

KOLKATA. AUG. 6. The newly appointed chairman-cum-managing director of United Bank of India, Mr. Madhukar plans to give a big push to the bank's profitability. The bank which came back in black recently, Mr. Madhukar promised to drive the net profit from Rs. 20-30 crore band to over Rs. 100 crores in just nine months of this fiscal by upgradation of the bad debt accounts and recovery of NPA through compromises. The profitability would further depend on release of huge money locked in low yielding government papers to personal banking segment. Referring the practices followed by his predecessor as a narrow banking exercise, Mr. Madhukar said that with a burden of Rs. 1,300 crores of accumulated losses and severe competition in the market place further squeezing the chances of growth, the bank can no more afford to play a safe game. ``Its a do or die situation for us. We must accept the challenge''.

Promised to pay the wage arrears of Rs. 84 crores partly or fully in this fiscal, he stressed on converting the bank's 180 fully computerised branches into the centre of activity. Based on a market survey, the bank would launch several new personal banking products in the next few weeks.

``The effort is to reduce the cost of funds from the present level of 8 per cent to below 7 per cent and enhancing the interest spread from as low as 2.6 per cent to over three per cent''. Percentage of net non per forming assets over advances would be brought down from 10 per cent to 5 per cent. An effort has also been taken to reduce the wastage through faster reconciliation.

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Section  : Business
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