UNITED BANK OF INDIA FINANCIAL RESULTS FY

29 th April, 2011 UNITED BANK OF INDIA FINANCIAL RESULTS FY 2010-11 PRESS RELEASE 1. Table of Contents Highlights for Q4 ended March 31, 2011 (Q4 FY11) Highlights for FY ended March 31, 2011 (FY11) Other Key Highlights as on March 31, 2011 Page No. 1 2 3 2. Details of Performance 4

Highlights for Q4 ended March 31, 2011 (Q4 FY10-11) 1. Net Profit stands at Rs. 143.23 crores registering a Y-o-Y growth of 208.8%. 2. Operating Profit up 48.0 % to Rs. 425.03 Crores. 3. Net Interest Income stands at Rs. 574.80 crores registering a Y-o-Y growth of 36.2%. 4. Non Interest Income stands at Rs. 219.17 crores registering a Y-o-Y growth of 37.4%. 5. Capital Adequacy 13.05 %, TIER I : 8.90 %, TIER II 4.15% 6. CASA : 40.80 % 7. Net Interest Margin at 3.19 % (1)

Highlights for Financial Year ended March 31, 2011 1. Net Profit up by 62.5 %. to Rs 523.97 cr (Rs 322.36 cr in FY 10) 2. Net Interest Income up by 55.9 % to Rs 2169.35 cr (Rs 1391.22 cr in FY10) 3. Non Interest Income up by 14 % to Rs. 637.05 cr (Rs 558.74Cr in FY10) 4. Operating Profit up by 72.1 % to Rs 1506.99 cr (Rs 875.85 cr in FY10) 5. Advance up by 26.1 % to reach at Rs 53934 crore. 6. Deposit up by 14.2 % to reach Rs 77845 crore. 7. Capital Adequacy : 13.05% ( 12.80 % in FY10) TIER I Capital Adequacy: 8.90 % ( 8.16 % in FY10) 8. Net Interest Margin at 3.19 ( 2.24 % in FY10) 9. Return on Average Assets (RoA) at 0.66 % (0.45 % in FY10) (2)

Other Key Highlights as on March 31, 2011 1. MSME Advances grew by over 27.2 % reaching Rs 8214 Crore. 2. Agriculture Advances increased to Rs 5712 Crore registering a growth of over 20.1%. 3. Auto Loans increased by 63.5 % to reach Rs 412 Crore, 4. Housing Loans to individuals grew by 21.1 % to reach Rs 2447 Crore 5. Education Loan increased by 13.1 % to reach Rs 448 crore. 6. The Priority Sector Advances increased to Rs 17751 Crore as on March, 2011 from Rs 14396 Crore as on March, 2010 thereby registering a growth of 23.3 % on y-o-y basis. (3)

Details of Performance United Bank of India today reported its financial performance for the year ended 31 st March 2011. The Board of Directors of United Bank of India has taken on record the audited Q4- FY- 2011 and audited FY-11 results at its meeting held in Kolkata today. Shri Bhaskar Sen, Chairman & Managing Director of the Bank informed that the Bank performed reasonably well during the Financial Year 2010-11 in comparison to its industry peers and achieved a Total Business of Rs. 131779 Crore recording a y-o-y growth of 18.8 %. The Deposits soared to Rs. 77845 Crore registering an annualized growth of 14.2%. The share of CASA stood at 40.8 %. The Savings Bank deposits and Current Deposits increased to Rs. 23217 Crore and Rs. 8529 Crore respectively with y o-y growth of 20.1% and 28.3%. 1. The Net Profit of the Bank stood at Rs. 523.97 Crore on 31 st March, 2011 2. Bank s Interest Income during the FY 2010-11 increased by 20.8 % on y-o-y basis to reach Rs. 6341.46 crore. During FY 2010-11, the Non-Interest Income was Rs. 637.05 Crore which grew by 14 % on y-o-y basis. 3. Capital Adequacy Ratio (CRAR) stood at 13.05 % as on 31 st March, 2011. The Tier I CRAR has increased from 8.16 % to 8.90 % during the same period. 4. As on 31 st March 2011 the gross Advances increased to Rs. 53934 Crore recording a growth of 26.1 % on y-o-y basis. On a y-o-y basis, the SME Advances grew by over 27 % reaching Rs. 8214 Crore as on March 31, 2011, Agriculture Advances increased to Rs 5712 Crore registering a growth of 20.1 %, Retail Loans increased by 35.4 % to reach Rs. 7753 Crore, The Priority Sector Advances increased to Rs 17751 Crore as on March 31, 2011 from Rs. 14396 Crore as on March 31, 2010 thereby registering a growth of 23.3 % on y-o-y basis. The CD Ratio of the Bank stood at 69.3 % as on March 31, 2011 up from 62.7% last year. (4)

5. As on 31 st March 2011, the Gross NPA ratio declined to 2.51% from 3.21% last year. The Net NPA Ratio of the Bank stood at 1.42 % as on March 31, 2011 as against 1.84% an year ago. 6. Expansion Plan Under the Expansion Plan, the Bank has opened its two new Regional Offices during the FY 2010-11, one at Chandigarh on 27th October, 2010 and another at Raipur (Chattisgarh) on 1st January, 2011. The Bank is also on the move of rapid branch expansion, across the country. No. of total branches, as on 31st March,2011: 1597 No. of total branches opened during FY 2010-11 : 63 No. of total branches opened during last quarter, ending 31st Mar,2011: 29 Further plan of branches, to be opened during FY 2011-12.: About 70 branches The Bank has also recently opened its Bangalore Regional Office ( 31 st Regional Office) on 25 th April,2011 at Bangalore. No. of Total ATM s : 508 (addition of 225 during the year) 7. Corporate Finance Branches: In continuation towards its commitment for providing a range of banking solutions to all parts of the society, ranging from common man to the Corporates, United Bank of India has opened Corporate Finance Branches, at Delhi, Kolkata & Mumbai. Initially, all Corporate Accounts, availing a credit limit of Rs. 50 crore and above, will be transferred to the Corporate Finance Branches of the Bank. 8. Initiatives on Bank s 61st Foundation Day (18th Dec,2010): A. Setting up Arsenic Treatment Plant. To provide safe drinking water at an Arsenic affected village in Gaighata Block, North 24 Parganas District, Bank has set up an Arsenic Treatment Plant. The plant will provide arsenic free safe drinking water to 3000 families in the locality. Bank has contributed Rs.14.26 lakh from its Socio Economic Development Foundation Trust to set up this plant. B. Customer Service Points: Bank has set up Customer Service Points in 61 unbanked villages of which 39 villages in West Bengal and 22 villages in Tripura to provide doorstep banking facilities using Biometric Smart Card through Business Correspondent Model. Initially villagers may undertake cash deposit and withdrawal in the No frills accounts and avail small value overdraft facility. Gradually bank will extend Term Deposit, Loan products like KCC, Remittance facility, Micro insurance and Micro Pension. All the Government benefits like payment under NREGA, Social security pension will be paid at the doorstep of the beneficiaries through this channel. (5)

9. Financial Inclusion Plan/ Initiatives taken by the Bank: During the F.Y. 2010-11, as per the direction of the Govt. of India and RBI, UBI being the SLBC Convener for West Bengal and Tripura states had been allocated 7486 villages and 420 villages in West Bengal and Tripura states, respectively. The Bank was initially allocated 1825 villages (having pop.>2000) covering 11 states and one union territory(andaman & Nicobar). Subsequently, due to relocation of villages in Manipur, Meghalaya, West Bengal and Orissa states, total allocation of villages stood revised at 1889. Out of the above, we have planned to open brick & mortar br. in 46 villages and remaining 1843 will be serviced through BC model using ICT( Information and Communication Technology) based solution. As per the roadmap envisaged, we were required to open banking outlets in 800 un-banked villages having population of more than 2000. Out of which, 18 villages were targeted for opening of physical branches and 782 villages were to be serviced through BC mode. As against the above target, Bank has opened 17 brick & mortar br. and 855 villages were covered through BC model, thereby surpassed the target set. Total enrolment in the above villages stood at 2.00 lakh. Statewise details are given below: Position as on 31.03.11 State Distt. No. of villages covered No. of enrolment done West Bengal 10 721 1,60,925 Orissa 17 68 7,608 Tripura 4 58 24,479 Assam 2 8 40 Total 33 855 1,93,052 State No. of Br. opened No. of No Frills accounts opened W.Bengal 12 6,037 Assam 2 652 Tripura 2 1,005 Manipur 1 40 17 7,734 The ICT based F.I. will support the following products/services: Cash Deposit Cash Withdrawals Balance Enquiry Mini Statement (6)

Transfer of Funds between two Smart Cards/Accounts Recurring Deposit Credit Linkages viz. Overdraft/KCC/GCC Loan Repayments Disbursement of Govt. benefits viz. NREGA Payments, Social Security Pension Payments etc. Other Non Banking Financial Services like remittance, Insurance, Mutual Funds etc. As mentioned earlier that out of target of reaching 1889 un-banked villages having population of >2000, we have covered 872 villages( BC model-855 + Br.17). During the current F.Y., we shall cover 988 villages through BC model by Sept 11 and we shall open 29 Br. by Mar 12. However, we shall takeup 1000 un-banked villages having population below 2000 during the 2 nd half of the current F.Y. All the BC Agents are being given Technical and operational training before start of the enrolment. Till 31.03.11, 900 CSPs have been given training. Moreover, our R-SETI Rajpur has been accredited by the IIBF wherein 5 day training course of BFs are also being organized. We are in the process to get accreditation for all the 10 R- SETIs.We have conducted 9 Workshops exclusively on Financial Inclusion in our Staff Training College, Kolkata wherein 207 nos. of Base Branch Managers and Nodal Officers of the implementing regions have been imparted necessary training. AADHAAR Facility: Bank has entered in to an MoU with UIDAI on 13.08.2010 to become a Registrar. We have received Registrar code from the UIDAI on 20.12.2010. Bank has started Aadhaar based enrolment on Pilot basis in Kolkata w.e.f. 26.03.11. At the initial stage we are enrolling our employees and their family members. So far we have enrolled 1450. In the next phase of Pilot, we shall be integrating FI enrolment with Aadhaar in 2 Distts. 10. HR Initiatives: Bank has completed the recruitment process of 747 Probationary Officers in JMG Scale-I. The recruitment process of 1334 Clerks is likely to be completed shortly. To beef up the operational efficiency of the Bank in some critical areas, Bank has recruited lot of Specialist Officers in the fields like, Risk Management, I.T., HR, Accounts, Engineering, Marketing, Official Language etc. To achieve the target of agricultural credit within the priority sector advance, Bank has recruited more than 100 Agriculture Officers after a lapse of many years. In a major bid to revamp the existing training infrastructure, decision has been taken to reopen the hitherto closed three training centres at Guwahati, Patna & Bhubaneswar. The CBS training centres at Mumbai and New Delhi have already been converted into full-fledged training centres. Special Training courses on specialized subjects like Credit Management, Forex have been arranged under the auspices of reputed institutes like IIM-Calcutta, IFBI etc. Effort is on for training systems to focus on creation of talent pool of officers in critical areas like Corporate Credit, Forex, Retail Banking, Risk Management, Marketing, Financial Inclusion etc. 11. Shri S.L.Bansal, Executive Director of the Bank informed that the Bank also distributes a range of parabanking products as Insurance (Life & Non-Life), Mutual Funds, Demat etc. New products are being developed in the bank for providing complete solutions to the customers of United Bank of India. On HR front, Shri Bansal informed that the employees of the bank shall be trained with Institutes of repute for specialized products/services. (7)