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United Bank of India Company History and Annual Growth Details

United Bank of India was constituted under the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 on July 19, 1969. The Head Office of the Bank was set up at 4 Clive Ghat Street (presently known as N.
C. Dutta Sarani, Kolkata 700 001 which was shifted to its present location at 11 Hemanta Basu Sarani, Kolkata -
700001 in 1972 for operational efficiency.

United Bank of India is one of the 14 banks which were nationalised on July 19, 1969. On October 12, 1950, the
name of Bengal Central Bank Limited (established in 1918 as Bengal Central Loan Company Limited) was changed
to United Bank of India Limited for the purpose of amalgamation and on December 18, 1950, Comilla Banking
Corporation Limited (established in 1914), the Comilla Union Bank Limited (established in 1922), the Hooghly
Bank (established 1932) stood amalgamated with the Bank. Subsequently, other banks namely, Cuttack Bank
Limited, Tezpur Industrial Bank Limited, Hindusthan Mercantile Bank Limited and Narang Bank of India Limited
were merged with the Bank.

Main Objects of the Bank

Section 3(5) of the Bank Acquisition Act states as follows:

"Every corresponding new bank shall carry on and transact the business of banking as defined in clause (b) of
section 5 of the Banking Regulation Act, 1949 (10 of 1949) and may engage in one or more of the other forms of
business specified in sub-section (1) of section 6 of that Act."

Section 5(b) of the Banking Regulation Act reads as follows:

"‘banking’ means the accepting, for the purpose of lending or investment, of deposits of money from the public,
repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise."

Section 6(1) of the Banking Regulation Act reads as follows:

'Form and business in which banking companies may engage:
(1) In addition to the business of banking, a banking company may engage in any one or more of the following forms
of business, namely-
(a) the borrowing, raising, or taking up of money; the lending or advancing of money either upon or without
security; the drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange,
hund is, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, certificates,
scrips and other instruments and securities whether transferable or negotiable or not; the granting and issuing of
letters of credit, traveller’s cheques and circular notes; the buying, selling and dealing in bullion and specie; the
buying and selling of foreign exchange including foreign bank notes; the acquiring, holding, issuing on commission,
underwriting and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations, securities and
investments of all kinds; the purchasing and selling of bonds, scrips or other forms of securities on behalf of
constituents or others, the negotiating of loans and advances; the receiving of all kinds of bonds, scrips or valuables
on deposit or for safe custody or otherwise; the providing of safe deposit vaults; the collecting and transmitting of
money and securities;
(b) acting as agents for any Government or local authority or any other person or persons; the carrying on of
agency business of any description including the clearing and forwarding of goods, giving of receipts and
discharges and otherwise acting as an attorney on behalf of customers, but excluding the business of a managing
agent or secretary and treasurer of a company;
(c) contracting for public and private loans and negotiating and issuing the same;
(d) the effecting, insuring, guaranteeing, underwriting, participating in managing and carrying out of any issue,
public or private, of State, municipal or other loans or of shares, stock, debentures, or debenture stock of any
company, corporation or association and the lending of money for the purpose of any such issue;

(e) carrying on and transacting every kind of guarantee and indemnity business;

(f) managing, selling and realising any property which may come into the possession of the company in satisfaction
or part satisfaction of any of its claims;

(g) acquiring and holding and generally dealing with any property or any right, title or interest in any such property
which may form the security or part of the security for any loans or advances or which may be connected with any
such security;

(h) undertaking and executing trusts;

(i) undertaking the administration of estates as executor, trustee or otherwise;
(j) establishing and supporting or aiding in the establishment and support of associations,
institutions, funds, trusts and conveniences calculated to benefit employees or ex-employees of the company or the
dependents or connections of such persons; granting pensions and allowances and making payments towards
insurance; subscribing to or guaranteeing moneys for charitable or benevolent objects or for any exhibition or for
any public, general or useful object;

(k) the acquisition, construction, maintenance and alteration of any building or works necessary or convenient for
the purposes of the company;

(l) selling, improving, managing, developing, exchanging, leasing, mortgaging, disposing of or turning into account
or otherwise dealing with all or any part of the property and rights of the company;

(m) acquiring and undertaking the whole or any part of the business of any person or company, when such business
is of a nature enumerated or described in this sub- section;

(n) doing all such other things as are incidental or conducive to the promotion or advancement of the business of the

(o) any other form of business which the Government may, by notification in the Official Gazette, specify as a form
of business in which it is lawful for a banking company to engage."

Section 3 (7) of Chapter II of the Bank Acquisition Act provides for the Bank to act as an Agent of the RBI.

(i) The corresponding new bank shall, if so required by the Reserve Bank, act as agent of the Reserve Bank at all
places in India where it has a branch, for:

(a) paying, receiving, collecting and remitting money, bullion and securities on behalf of any Government in India;
(b) undertaking and transacting any other business which the Reserve Bank may from time to time entrust to it.

(ii) The terms and conditions on which any such agency business shall be carried on by the corresponding new bank
on behalf of the Reserve Bank shall be such as may be agreed upon.

(iii) If no agreement can be reached on any matter referred to in clause (ii), or if a dispute arises between the
corresponding new bank and the Reserve Bank as to the interpretation of any agreement between them, the matter
shall be referred to the Central Government and the decision of the Central Government thereon shall be final.

(iv) The corresponding new bank may transact any business or perform any functions entrusted to it under clause
(i), by itself or through any agent approved by the Reserve Bank.

(2) The terms and conditions on which any such agency business shall be carried on by the corresponding new
Bank on behalf of the Reserve Bank shall be such as may be agreed upon.

(4) The corresponding new Bank may transact any business or perform any function entrusted to it under Clause (I)
by itself or through any agent approved by the Reserve Bank.

Key Milestones

Sr. No. Year Details
1. 1961 The Cuttack Bank Limited and The Tezpur Bank Limited merged with our Bank

2. 1964 Staff Training college at Kolkata (then Calcutta) was setup

3. 1969 Our Bank was nationalised by GoI

4. 1970 Mobile branches were set up by our Bank

5. 1973 Hindusthan Mercantile Bank Limited merged with our Bank

6. 1976 Narang Bank of India Limited merged with our Bank

7. 1980 Appointed as convenor of State Level Bankers’ Committee in West Bengal,
Tripura and Manipur

8. 1993 First branch brought under total branch mechanism

9. 1995 Crossed business level of Rs. 10,000 crore

10. 2006 Crossed business level of Rs. 50,000 crore

11. 2007 Rolled out first CBS branch

12. 2007 Setup United Bank Socio - Economic Development Foundation Trust in 2007 for
rendering assistance to the weaker and under priviledge sections of the society

13. 2007 Setup the first Rural Development & Self Employment Training Institute to
provide residential training to small farmers and unemployed youth free of cost

14. 2009 Achieved 100% CBS for all its branches

15. 2009 Crossed business level of Rs. 100,000 crore

Awards/ certifications received by the Bank

Year Award and Recognition

2006 National Award for the second best performance in financing small scale units by Ministry
of Small Scale Industries, Government of India

2007 Golden Jubilee Award for the best bank in north east zone for excellence in the field of
khadi and village industries from the Ministry of MSME, Government of India

2007-2008 Best Bancassurance partner byTata AIG

2008 National Award for the best bank for excellence in field of Khadi and village industries for
east and north east zones from the Ministry of MSME, Government of India

2008-2009 Pinnacle Partner of the year by Tata AIG

2008-2009 Highest contibutor to lives insured by Tata AIG

2009 National Award under Prime Minister Employment Guarantee Programme in north east
zone from the Ministry of MSME, Government of India


- The bank has recommended dividend of Rs. 2.20 (22%) per equity share.

- United Bank of India has increased its Base Rate and Prime Lending Rate by 25 b.p.s. to 10.25% and 14.50% respectively.

- United Bank of India has has increased it benchmark lending rates i.e. Base Rate (BR) and Prime Lending Rate (BPLR) by 35 basis points each, hence revised BR and BPLR stands at 10.60% and 14.85% respectively.


- The bank has recommended dividend of Rs. 2.40 (24%) per equity share.


- United Bank of India has has revised its Base Rate i.e. the benchmark rate for pricing its loan products, from existing 10.45% to 10.25% .

- United Bank of India plunges over 12% on concerns over rising NPA.


- United Bank of India increases base rate by 25 basis points.

- United Bank of India has been decided to reduce the Base Rate of the Bank from 10.50% to 10.25% .

- Reserve Bank of India has allowed the Bank to consider loan proposals up to Rs. 200cr. taking exposure to AAA rate PSUs and corporate borrowers subject to ensuring CD Ratio not beyond 70% and CRAR not below 9% .

-UBI introduces online SB account opening facility