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Saturday, February 20, 2010

After IPO, United Bank to get new CMD

Post-IPO Kolkata based United Bank of India is set to get a new head as present chairman and managing director SC Gupta will retire by end of this month. Sources said Bhaskar Sen is likely to become the new chairman and managing director, just after the bank completes its initial public offer.

Bhaskar Sen, who had joined Dena Bank in 2007 from Union Bank of India, where he was working as general manager, headed new businesses of the bank.

Sen also looked after overseas expansion and strategic initiatives of the bank.

According to UBI insiders, Sen’s overseas experience would help the bank’s foreign operations. In fact, UBI started a representative office in Bangladesh a few weeks back and is planning to upgrade that into a branch in six months.

The bank is also planning to have a representative office in Myanmar and already has tie ups with four government banks in the country.

Meanwhile, the bank has received exemption from the Securities and Exchange Board of India (SEBI) for appointment of independent directors before its initial public offering (IPO) of shares.

“We have explained to SEBI that it might take sometime before we fill the quota of independent directors and have given an undertaking that we will keep them informed as and when we appoint them," TM Bhasin, UBI’s executive director, said.

The bank has already applied to the government of India for appointment of four more independent directors. At present the bank’s board of directors comprises seven directors of which two are only independent directors.

A delay in recruiting independent directors might have cost the bank dearly. In such a case the bank would have to continue to be in non-compliance of the corporate governance requirements of the listing agreement.

''We have to recruit two more directors and one shareholders' representative into the board,'' Bhasin said.

UBI’s IPO of 5,00,00,000 equity shares of face value of Rs 10 each will open on February 23 and close on February 25.


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