United Bank of India

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United Bank of India (UBI) got listed on the Indian bourses on March 18, 2010 at Rs 77. UBI has a good presence in Eastern India. Recently the Government of India has conveyed the sanction of the President of India to the payment of Rs 300 crore towards contribution of the central government in the Perpetual Non-Cumulative Preference Shares (PNCPS) of the bank. This capital infusion is a part of the govern-ment’s initial sanction to the proposal to infuse a total of Rs 800 crore in the bank through PNCPS. This will be a part of the Tier I capital of the bank. If we go by the volume the stock has been witnessing good trading volumes. Some big insurance companies and mutual funds are showing interest in the stock. In the last two trading sessions the volumes sum up the fact that there is good buying interest in the stock. It is also heard that UBI is likely to post better results in this fiscal. One can look at the stock for both short and medium-term perspective.