UBI was one of the sick banks according to the parameters suggested by Verma Committee in 1999. But after restructuring, it has shown impressive performance with regard to the seven parameters set by the Verma Committee. The bank has worked hard on marketing and motivational starategies and focused on strict cost control measures, with good results.
Ever
since the massive program of bank nationalization was
launched by the Government of India in late 1960s and
early 1980s, public sector banks held a combined market
share of over 95% till 1990s. The early 1990s saw a
metamorphosis in banking industry, as Government of
India opened up the sector for private and foreign players.
Soon, the new private and foreign banks started to pose
a serious threat to all the public sector banks with
their much superior quality services.
Added
to this, Government of India introduced new set of norms,
viz., Prudential Norms, Capital Adequacy, Income Recognition,
Asset Classification and Provisioning Norms to be followed
by all the commercial banks in India. The public sector
banks found it difficult to cope with these new norms
as 12 out of 27 public sector banks posted losses in
the very first year of its implementation.
Indian
Bank, UCO Bank and United Bank of India posted an industry
loss of over 680 cr in the year 1996-97 and later, these
three banks were labeled as the weakest public sector
banks in India. |
