United Bank of India

United Bank of India (UBI) was an Indian government-owned bank headquartered in Kolkata, India. Presently the bank has a three-tier organisational setup consisting of its head office in Kolkata, 36 regional offices and 2054 branches spread all over India. However, its major presence is in Eastern India. The bank has three full-fledged overseas branches, one each at Kolkata, New Delhi and Mumbai. United Bank of India now aims to expand its international activities.

United Bank of India
Public sector undertaking
Traded as
IndustryBanking
Financial services
FateMerged with Punjab National Bank
Predecessors
SuccessorPunjab National Bank
Founded1950 (1950)
FounderNarendra Chandra Dutta,

Shri J.C Das, Indu Bhushan Dutta,

Shri D.N Mukherjee,
Defunct1 April 2020 (2020-04-01)
HeadquartersKolkata, West Bengal, India
Area served
India
Key people
Ashok Kumar Pradhan
(MD & CEO)
ProductsFinance and Insurance
Consumer Banking
Corporate Banking
Investment Banking
Investment Management
Private Equity
Mortgages
Revenue₹10,945.00 crore (US$1.5 billion) (2019)[1]
₹1,412.00 crore (US$200 million) (2019)[2]
₹-2,316.00 crore (US$−320 million) (2019)[1]
Total assets₹151,530.00 crore (US$21 billion) (2019)[2]
OwnerGovernment of India
Number of employees
15,191 (2018)[2]
Capital ratio10.08% (2016)[1]
Websitewww.unitedbankofindia.com

On 30 March 2009, the Indian government approved the restructuring of United Bank of India.[3] The government proposed to invest 2.5 billion rupees in shares by 31 March and another 5.50 billion in the next fiscal year in Tier-I capital instruments. The move is part of the Indian government's program to improve the capital base of the state-owned banks. UBI gets SEBI approval for Rs 1,000 crore equity issue via QIP On 22 November 2017, United Bank of India (UBI) said it has received SEBI's approval for issue of equity shares worth Rs 1,000 crore by way of institutional placement.

On 1 April 2020, the bank along with Oriental Bank of Commerce has been merged with Punjab National Bank, making it as the second largest public sector bank in India.[4]

History
Logo of the defunct Comilla Banking Corporation Limited

UBI was the result of the merger in 1950 of four Bengali banks: Comilla Banking Corporation (founded by Narendra Chandra Dutta in 1914 in what is now Bangladesh), Bengal Central Bank (founded by Sri J.C. Das in 1918), Comilla Union Bank (founded by Shri Indu Bhusan Dutta (IAS), in 1922) and Hooghly Bank (founded by Sri D.N. Mukherjeee 1932). All four had suffered runs in December 1983 after the failure of the Nath Bank. The Reserve Bank of India assisted the banks in amalgamating to form United Bank of India.

In 1961, UBI merged with Cuttack Bank (est. 6 June 1913) and Tezpur Industrial Bank (est. 6 June 1918, as the first commercial bank in Assam province). Four years later, in 1965, the Government of Pakistan took over the bank's branches in Pakistan.

On 19 July 1969, the Government of India nationalised UBI, along with 13 other major Indian commercial banks. At the time of nationalisation UBI had only 174 branches. In 1973, UBI acquired Hindustan Mercantile Bank (est. 1944). In 1976, UBI acquired Narang Bank of India, which had been established in 1943 in Narang, Gujarat.

Amalgamation

On 30 August 2019, Finance Minister Nirmala Sitharaman announced that United Bank and Oriental Bank of Commerce would be merged with Punjab National Bank. The proposed merger would make Punjab National Bank the second largest public sector bank in the country with assets of ₹17.95 lakh crore (US$250 billion) and 11,437 branches.[5][6] MD and CEO of UBI, Ashok Kumar Pradhan, stated that the merged entity would begin functioning from 1 April 2020.[7][8] The Union Cabinet approved the merger on 4 March 2020. Punjab National Bank announced that its board had approved the merger ratios the next day. Shareholders of Oriental Bank of Commerce and United Bank will receive 1,150 shares and 121 shares of Punjab National Bank, respectively, for every 1,000 shares they hold.[9] The merge came into effect since 1 April 2020. Post merger, Punjab National Bank has become the second largest public sector bank in India[10]

Controversy over Non-performing Assets (NPAs)

In February 2014, an RBI-appointed forensic audit by Deloitte found serious lapses in the Non-performing asset detection system of the bank.[11] It is yet to be established whether this oversight on the part of the bank was deliberate or unintentional.

The bank has reported a loss of Rs. 1,238 crore during Q3 of the 2013-14 fiscal year, resulting in a downgrade of its tier-II bonds by ICRA, an associate of Moody's Investor Service.[12] United Bank of India's reported NPA of 10.82% is the highest in percentage among listed banks in India.[13]

Delivery channel based products
  • ATM with cash recycler at many branches
  • Varieties of debit card like platinum and moments card
  • Internet banking
  • Mobile banking
  • Prepaid card
  • SMS banking
  • United E passbook application
  • United wallet for utilities payment
  • United credit card
  • United UPI Bhim application

See also

References
  1. "Untitled Page". www.bseindia.com.
  2. "UBI Annual Report 2014-2015" (PDF).
  3. "United Bank of India Gets Indian Government Boots". Archived from the original on 8 April 2009. Retrieved 30 March 2009.
  4. "All branches of Oriental Bank of Commerce, United Bank of India start functioning as PNB branches". Moneycontrol. Retrieved 2 April 2020.
  5. "Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year low". The Times of India. Retrieved 2 April 2020.
  6. Writer, Staff (30 August 2019). "10 public sector banks to be merged into four". Mint. Retrieved 30 August 2019.
  7. "Merged entity of UBI, PNB, OBC to become operational from April 1, 2020". Business Today. Retrieved 14 September 2019.
  8. "Merged entity of UBI, PNB, OBC to become operational from 1 April next year". Mint. 14 September 2019. Retrieved 14 September 2019.
  9. Ghosh, Shayan (5 March 2020). "Three banks announce merger ratios". Livemint. Retrieved 6 March 2020.
  10. "Merger of 10 public sector banks to come into effect from today: 10 points". Livemint. 31 March 2020. Retrieved 2 April 2020.
  11. Gill, Simran. "Is bad loan menace at United Bank of India a cover-up after serious lapses?". The Economic Times. Retrieved 14 February 2014.
  12. "NPA worries lead to UBI bond rating downgraded". Deccan herald. Retrieved 14 February 2014.
  13. "UBI reports Rs 1,238-cr loss". Business Standard. Retrieved 14 February 2014.
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