According to reports, United Bank of India (UBI) is eyeing credit growth of 20%and deposits growth not surpassing 22%during the existing financial year (2010-11).

The banking institution said that it would keep its advances growth controlled up to September 2010 by keep itself away from low-yielding loans.

Mr. Bhaskar Sen, bank's chairman and managing director said, "We are deliberately avoiding low-return loans but hope to seize the opportunity of attaining higher credit growth after September."

United Bank of India recorded an increase of 53.5% in its net profit at Rs 107.86 crore for April-June quarter of the current fiscal (2010-11).

The main factors behind growth in profitability were development in net interest margin to 2.98%as against 1.90% in 2009 and fall in depository cost to 5.40% as compared to 6.47%.

As per functionaries, government-owned United Bank of India (UBI) has paid dividend worth Rs 53.29 crore for the financial year (2009-10) to the Indian administration, which possesses 84.20% in the bank.

In June 2010, the administration inculcated Rs 250 crore as PNCPS to UBI, thus infusing around Rs 800 crore up till now as tier I capital in the bank.