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Saturday, September 02, 2006

United Bank plans IPO

United Bank of India, in an effort to restructure its capital base, is likely to go for an initial public offering (IPO) of an undisclosed amount soon, reports Business Standard.

The issue is aimed at converting Rs 12.32 billion of its equity base of Rs 15.32 billion into preferential share and perpetual bond. The bank has already submitted its proposal to the Reserve Bank of India.

The bank has also targeted business worth Rs 550 billion in the current financial year, up 23 per cent over last year. Moreover, it has plans to open 50 branches this year in north and central India.

RBI had allowed the bank to write off bad debt amounting to Rs 2.7144 billion against capital. This enabled the bank to pay dividend after a gap of 14 years.

By July, the bank had already managed to open 10,04,175 fresh accounts through its branch network.

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