Having turned around by posting profits for the last three years, United Bank of India is mulling returning the government capital worth Rs 800 crore (Rs 8 billion) and said there was no financial compulsion for it to go for an initial public offer.
"It might be possible for us to return capital worth around Rs 800 crore. But we will take a view on it after analysing the balancesheet in depth," UBI chairman Madhukar told PTI on the sidelines of a credit awareness programme - in New Delhi - by which the bank was able to lend about Rs 11 crore (Rs 110 million) at one go.
Asked by when the capital would be returned, he declined to give any specific time frame and said it depended on the outcome of the analysis.
The Kolkata-based bank, which turned around without any financial package from the Centre, had been focussing on recovery and laid thrust on enhancing lending, from which it is aiming to create an additional Rs 2,000 crore (Rs 20 billion) assets by December 2003.
The bank, which has been rated among the top 1,000 banks in the world by The Banker journal of Financial Times, is aiming an additional Rs 800-1,000 crore (Rs 8-10 billion) lending within the first six months of this fiscal.
Asked about the IPO, which had become the buzzword after the successful Maruti offer and in the wake of buoyant capital markets, Madhukar said the bank was examining it.
"The board is yet to examine it. However, there is no financial compulsion for us to go for an IPO since we have enough capital adequacy," the UBI chief said.
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