Public sector bank UBI said it optimistic about reaching 18% hike in loans given in the current financial year.
Bhaskar Sen, UBI’s Chairman and Managing Director said “The RBI has a projection of 16 per cent for the current fiscal. I think it is quite possible to achieve 18 per cent credit growth”.
Many public sector banks are optimistic about reaching 18-20% credit growth in this fiscal, despite poor demand from the industry.
United Bank got listed on the Bombay Stock Exchange at a premium of 17 % at Rs 77 as compared to the issue price of Rs 66 per share. Its listing price on NSE was Rs 74.9, a premium of 13.48%.
Sen said the bank anticipates getting Rs 550 crore capital infusion from government, whose shareholding in UBI has fallen to 84.2% from 100%.
He said, “Last year, we received Rs 250 crore from the government. This year, we expect to receive Rs 550 crore capital from the government by end of this month”.
Finance Minister Pranab Mukherjee had declared Rs 16,500-crore recapitalisation programme, to help these banks fulfill their Tier I (equity) capital need.