United Bank to hit primary market in December

June 22nd, 2009 - 5:43 pm ICT by IANS  

Kolkata, June 22 (IANS) The state-owned United Bank of India (UBI) is likely to enter the primary market by December, a top bank official said here Monday.
“We plan to raise about Rs.300-400 crore from the IPO (initial public offer),” UBI chairman and managing director S.C. Gupta told reporters at the Banking Conclave organised by Federation of Indian Chambers of Commerce and Industry.

He said the bank would go ahead irrespective of the stock market situation in December, but added it was yet to finalise the extent of stake dilution.

Gupta also said UBI would cut interest rates shortly. “Our asset liability committee is meeting next week, where a quarter to half a percentage point cut in our lending rate could be decided.”

UBI had earlier reduced its prime lending rate by 25 basis points to 12.25 percent with effect from April 1.

“This time we have to cut deposit rates too,” Gupta added, but did not specify by how much.

Asked about expansion plans, Gupta said his bank planned to open a representative office in Bangladesh - its maiden presence overseas - by December. “We also plan to have a presence in Myanmar at a later time.”

The Kolkata-based bank has a network of 1,454 branches and plans to add around 108 this fiscal.

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