The Board of Directors have pleasure in presenting the 61st Annual
 Report of the Bank along with the Audited Balance Sheet, Prof t and
 Loss Account and the report on Business and Operations for the year
 ended March 31, 2011 (FY – 2010-11).
 
 1. Performance at a Glance:
 
 The total business of the Bank increased by Rs.20,843 crore to reach
 Rs.131,779 crore at the end of the financial year 2010-11 from Rs.110,936
 crore at the end of previous f nancial year 2009-10, record- ing a
 growth rate of 18.8%.
 
 The total deposits of the bank have grown by Rs.9,665 crore from Rs.68,180
 crore as on 31st March 2010 to Rs.77,845 crore as on 31st March, 2011
 registering a growth rate of 14.2%.
 
 The Bank continued its prudent approach in expanding quality credit
 assets in line with its policy on Credit Risk Management. The total
 advances of the Bank increased by Rs.11,178 crore from Rs.42,756 crore as
 on 31st March, 2010 to Rs.53,934 crore as on 31st March, 2011,
 registering a growth rate of 26.1%. During the year, focused attention
 was for lending to retail sector, agriculture, MSME and midsize
 corporate segments for expansion of credit.
 
 During the year, performance of the Bank under recovery of NPAs was
 very good. During the year, the bank ef ected a cash recovery and
 up-gradation of NPAs of Rs.586.11 crore compared to Rs.454.84 crore in the
 previous year. As a result, Gross NPA of the Bank reduced from Rs.1372
 crore as on March 31, 2010 to Rs.1356 crore as on March 31, 2011 in spite
 of fresh slippages.
 
 While the encouraging performance in dif erent functional areas during
 the year 2010-11 resulted in increased earnings in absolute terms and
 the interest spread increased from 2.44% as on 31st March 2010 to 3.06%
 as on 31st March 2011.
 
 2. Income Analysis
 
 Interest income of the Bank recorded a growth of Rs.1,092.52 crore
 (20.8%) from Rs.5,248.94 crore in the year 2009-10 to Rs.6,341.46 crore, as
 against the interesThexpenses which grew by 8.1% from Rs.3,857.72 crore
 during the year 2009-10 to Rs.4,172.11 crore during the year 2010-11. The
 Net interest income recorded a growth of Rs.778.13 crore (55.9%) during
 the same period.
 
 The total income (total of interest income and non-interest income) of
 the bank improved to Rs.6,978.51 crore during the year 2010- 11 from
 Rs.5,807.68 crore in the previous year recording a rise of Rs.1,170.83
 crore.
 
                                          (Amount in Rs./crore)
 
                               2009-10    2010-11    Change in %
 
 Interest Income               5248.94    6341.46         20.8
 
 InteresThexpen-               3857.72    4172.11          8.1
 diture
 
 Net Interest                  1391.22    2169.35         55.9
 Income
 
 Non-Interest Income or Other   558.74     637.05         14.0
 Income
 
 Net Total Income              1949.96    2806.40         43.9
 
 Operating Ex-                 1074.12    1299.41         21.0 
 penses
 
 Operating Prof t               875.84    1506.99         72.1
 
 Provisions & Con- 
 tingencies (Excl.              465.32     838.02         80.1 
 Tax)
 
 Prof t before Tax              410.52     668.97         63.0
 
 Provision for Tax               88.16     145.00         64.5
 
 Net Prof t                     322.36     523.97         62.5
 
 Dividend (%)                     20          22 (proposed)
 
 Non-interest income increased by Rs.78.31 crore (14.0%) from Rs.558.74
 crore in the f nancial year 2009-10 to Rs.637.05 crore in the f nancial
 year 2010-11. The share of total Non-Interest Income to total Income
 stood at 9.1%. The Non-Interest Income (excluding Trading Prof t)
 increased from Rs.378.27 crore to Rs.438.60 crore in FY 2010-11 recording a
 growth rate of 15.9%.
 
 The Net Total Income ( Net Interest Income plus Non interest Income)
 has increased from Rs.1,949.96 crore in the f nancial year 2009-10 to
 Rs.2,806.40 crore in the f nancial year 2010-11 recording a growth of
 43.9%.
 
 The Operating Expenses have shown an increase of 21.0% during the f
 nancial year 2010-11 and stood at Rs.1,299.41 crore as compared to
 Rs.1,074.12 crore in 2009-10.
 
 The Cost to Income ratio (Operating expenses to Net Operating Income)
 has come down from 55.08% for the f nancial year 2009-10 to 46.30% in
 the f nancial year 2010-11.
 
 3. Spread Analysis
 
                                                (Amount in Rs./crore)
 
                                                        Growth
                             2009-10      2010-11
 
                                                    Absolute        %
 
 Total Interest Income       5248.94      6341.46    1092.52    20.81
 
 Total Interest              3857.72      4172.11     314.39     8.15
 Expended
 
 Net Interest Income         1391.22      2169.35     778.13    55.93
 
 Yield on Funds                 8.43%        8.87%
 
 Cost of Funds                  5.99%        5.81%
 
 Interest Spread                2.44%        3.06%
 
 4. Operating Prof t
 
 The Bank has registered an Operating Prof t of Rs.1,506.99 during the
 Financial year 2010-11 as compared to Rs.875.84 crore in the financial
 year 2009-10 registering an increase of Rs. 631.15 crore (72.1%).
 
 The Asset Utilisation Ratio (percentage of Operating Prof t to Aver-
 age Working Funds) stood at 1.89% for the f nancial year 2010-11
 compared to 1.22% for the f nancial year 2009-10.
 
 5. Provisions
 
 The Provision for Loan Losses, Provision on Standard Assets, Taxation
 and others aggregated to Rs.983.02 crore in the f nancial year 2010-11 as
 compared to Rs.553.49 crore in the f nancial year 2009-10.
 
 6. Net Prof t
 
 The Bank registered a Net Prof t of Rs.523.97 crore for the f nancial
 year 2010-11 compared to Rs.322.36 crore in the f nancial year 2009-10.
 
 7. Net Worth and CRAR
 
 The Net Worth of the Bank improved to Rs.5,021.68 crore as on 31st March,
 2011 from Rs.3,902.93 crore as on 31st March, 2010.
 
 The Capital to Risk Adjusted Assets Ratio (CRAR) stood at 11.16% (Basel
 I) as on 31st March, 2011 as against 11.02% as on 31st March, 2010
 which is much above the norm of 9% stipulated by Reserve Bank of India.
 The CRAR as per Basel II guidelines works out to 13.05%.
 
 The Tier-I & Tier-II components of CRAR under Basel II are 8.90% &
 4.15% respectively as on 31st March 2011 compared to 8.16% & 4.64%
 respectively as on 31st March, 2010. The Return on Equity, Earnings Per
 Share and Book Value per Share for the Financial Year 2010-11 stood at
 12.86%, Rs.14.38 and Rs.102.89 respectively, against 10.64%. Rs.10.18 and
 Rs.91.69 respectively for the previous year.
 
 8. Branch Expansion
 
 With the opening of 63 branches during the year 2010-11, the total
 number of branches stands at 1597 as on 31.03.2011 spread across
 
 all the states of the country consisting of 645 rural (40,4%), 299
 semi-urban (18.7%), 350 urban (21.9%) and 303 metro (19.0%) branches. T
 e Bank has also 7 Extension Counters and 508 ATMs.  The Bank is also
 having its representative of ce at Dhaka in Bangla- desh. State wise
 opening of 63 branches are as under:
 
                No. of
 State                            State          No. of branches 
               branches
 
 Assam            2               Manipur                2
 
 Meghalaya        1               Tripura                2
 
 Sikkim           1               West Bengal           18
 
 Bihar            3               Orissa                 8
 
 Jharkhand        5               Delhi                  1
 
 Haryana          3               Punjab                 2
 
 Rajasthan        2               Uttar Pradesh          2
 
 Chhatisgarh      3               Maharashtra            4
 
 Gujarat          2               Karnataka              1
 
 Andhra Pradesh   1
 
 Two branches at Sagardighi of Murshidabad District and Mirati of
 Birbhum District were inaugurated by Shri Pranab Mukherjee, Honble
 Union Finance Minister on 18.04.10 and 31.01.2011 respectively.  The
 Bank has also opened 17 branches in unbanked villages having population
 2000+ under Financial Inclusion Plan. Besides the Bank has opened
 branches at Nongshillong and Tamenglong Bazar to extend banking
 facilities in unbanked Mawthadraishan Block of Meghalaya state and
 Tamei and Tousem Blocks of Manipur state respectively.  The bank has
 also opened three Corporate Finance branches in Delhi, Mumbai and
 Kolkata during the year. Out of 1597 branches, 757 branches (47.4%) are
 located in 68 Minority Concentration Districts (MCDs) throughout the
 country and f fty nine percent of the total branch networks are in
 rural and semi-urban areas to serve our country in the hinterland.
 
 With the opening of two Regional Of ces at Chandigarh and Raipur on
 27.10.10 and 01.0 1.11 respectively, the total number of Regions
 
 stands at 30 as on 31.03.2011. Six regions namely Central, Central
 Assam, North India, 24-Parganas Central, Orissa-I and Orissa-II have
 also been renamed as Lucknow, Guwahati, New Delhi, Behala, Bhubaneswar
 and Sambalpur respectively on and from 10.01.11.
 
 9. Government Business
 
 The Bank undertakes dif erent Government Business Activities including
 collection of Government Revenues e.g. Direct Tax (CBDT), Indirect Tax
 (CBEC), VAT / Sales Tax, Professional Tax etc., collection of
 Government DeposiThe.g. PPF, SCSS, RBI Bond etc., Handling Government
 Fund e.g. Treasury Function, DMA accounts, Payment of School Teachers
 Salary and dif erent categories of Pension and operation and
 maintenance of currency chests etc. Total Tax collection during the f
 nancial year 2010-11 were to the tune of Rs.7366.13 crore.
 
 Centralised Pension Processing Centre (CPPC) of our Bank has been
 operationalised under Government Transaction Department, Head Of ce for
 undertaking all works related to payment of pension reimbursement of
 pension fund, Agency Commission, Pensioners grievance redressal etc.
 Payments of Central Civil & Political Pension of around 20000
 pensioners are already being made through CPPC. The process of data
 cleaning and capturing of pension data is going on to bring all others
 treasuries like Defence, Railway, Telecom and all State pensioners
 under CPPC shortly.
 
 To sensitize the ground level functionaries and impart knowledge
 amongst them, Training Programmes and Workshops are being organised
 regularly by the Bank. During the f nancial year 2010- 11, following
 Training Programmes / Workshops were conducted.
 
 Training /            No. of              Place 
 Workshop             Occasions
 
 Government             6          Staf Training College, Kolkata
 Business
 
 Currency Chest
 Operation &            6          Malda, Kolkata & Coochbehar
 
 Cash Manage- ment
 CPPC                   5          Staf Training College, Kolkata
 
 Most of the Workshops on currency chest were conducted with the faculty
 support from RBI, Kolkata in presence of General Manager, Issue
 Department, RBI, Kolkata.  Agency commission earned from Government
 Business during the Financial Year 2010-11 are as follows:
 
 BUSINESS TYPE                   TOC EARNED (Rs. in crore)
 
 TAX                                   2.40
 
 PENSION                              12.99
 
 SCHOOL SALARY                        31.60
 
 TREASURY                              6.38
 
 PPF,SCSS, BOND & SDS                  0.24
 
 DMA                                   0.45
 
 TOTAL                                54.06
 
 10. Corporate Social Responsibilities – CSR Activities
 
 CSR has been assuming greater importance in the corporate world,
 including the banking sector. Over the years, we at United Bank of
 India, have integrated CSR principles with the Banks f nancial, pro-
 motional and development assistance to the Priority Sector, indus-
 trial growth, infrastructure development, as well as our own internal
 functioning through good corporate governance practices.
 
 Our CSR pillars are Sustainable Banking, Environment, Social
 Commitments, Human Resources Development and Stakeholders Engagements.
 
 We acknowledge that lending to MSME sector, Priority Sector including
 Education Loans has signif cant sustainability impact.  Responsible
 banking, along with realization of economic benef ts and protection of
 environment form an integral part of our CSR strategy. For instance, we
 do not provide credit to Ozone depleting industries. We give credit to
 industrial units after they obtain No Objection Certif cate from the
 Pollution Control Board, wherever required.
 
 An important plank of our CSR framework has been to widen and deepen
 the process of f nancial inclusion by way of purveying micro credit to
 the disadvantaged sections, such as women, minorities and backward
 classes in rural, unorganized and weaker section of the society.
 
 11. United Bank Rural Self-Employment Training Institute (UBRSETI)
 
 Bank has set up 5 more RSETIs during the current year and the total
 RSETIs set up by the bank as on 31.03.2011 stands at 10. The RSETIs
 opened during the year 2010-11 are as follows:
 
 . United Bank Rural Self Employment Training Institute (UBIRSETI),
 North Lakhimpur, Assam - opened on 11.05.2010.
 
 . United Bank Rural Self Employment Training Institute (UBIRSETI),
 Raiganj, Uttar Dinajpur, West Bengal - opened on 20.09.2010.
 
 . United Bank Rural Self Employment Training Institute (UBIRSETI),
 Balurghat, Dakshin Dinajpur, West Bengal - opened on 24.01.2011.
 
 . United Bank Rural Self Employment Training Institute (UBIRSETI),
 Dhalai, Ambassa, Tripura- opened on 25.01.2011
 
 . United Bank Rural Self Employment Training Institute (UBIRSETI),
 Purulia, West Bengal.- opened on 29.03.2011.
 
 Bank has set up Rural Development and Self Employment Trust (UBRUDSET)
 as apex policy making body of the institutes. The Trust reviews
 functioning of RUDSETIs on quarterly basis. The last such review was
 undertaken on 18.03.2011 at the meeting of the Board of Trustees of
 UBRUDSET.
 
 Up to 31.03.2011 these institutes have imparted training to 11188 rural
 youths/women of which 8070 trainees are self employed and 463 trainees
 are wage employed. Out of 8070 self employed trainees 3902 trainees
 have got loans from banks.
 
 The institutes are providing post training support (Escort service)
 including arrangement of loan from our bank branches to enable the
 trainees to set up their own venture.
 
 The bank has been allotted 7 more Districts for opening of RSETIs by
 the respective SLBC Assam (Hilakandi, Karimganj, Sibsagar, Morigaon &
 Dhemaji Districts), Manipur( East Imphal District) and Meghalaya(
 Jayantia Hill District).
 
 . FLCC
 
 Bank has also set up 5 Financial Literacy cum Credit Counselling
 Centres (FLCCs) in the districts of South 24-Parganas, Uttar Dina- jpur
 & Dakshin Dinajpur in West Bengal and Cachar in the state of Assam and
 South Tripura in Tripura to extend f nancial literacy and credit
 counselling services to the poorer section of the society.
 
 . United Bank Socio-Economic Development Foundation (UBSEDF)
 
 United Bank Socio-Economic Development Foundation (UBSEDF) was
 established on 30th March 2007 with the objective of promoting and
 carrying out social and economic developmental activities and
 
 rendering assistance to weaker and under privileged section of the
 society in terms of decision taken by the Board of Directors of the
 Bank in its meeting held on 18th December, 2006, towards discharg- ing
 corporate social responsibility of the Bank.
 
 The Trust has undertaken a series of welfare activities involving total
 assistance of Rs.71.15 lac. The year wise break up of the assistance are
 furnished below:
 
                  NO. OF       AMOUNT OF ASSISTANCE
 
 YEAR             UNITS            (Rs. in lac)
 
 2007-08            8                 6.50
 
 2008-09            8                 7.21
 
 2009-10            7                 8.05
 
 2010-11           16                49.39
 
 TOTAL             39                71.15
 
 Some of the important projects are ,setting up of an Arsenic Treat-
 ment plant at Gaighata, North 24-Parganas district with a funding
 assistance of Rs.14.26 lac and adoption of two girl children from the
 weaker section in Jharkhand Region for meeting their all educational
 expenses, etc.
 
 12. Progressive use of Of cial Language
 
 In pursuance to the Of cial Language Policy of the Government of India,
 the bank has recruited 15 (f fteen) Of cial Language Of cers during the
 year to speed up propagation and development of of cial Language Hindi
 for of cial purpose.
 
 To accelerate the progressive use of Hindi in Of cial business, All
 India Conference of Of cial Language Of cers of the Bank and review
 meeting was held on 04.06.2010 at Banks Head Of ce.  Various Intensive
 Programmes were introduced for day-to-day use of Hindi based on
 encouragement and motivation in the Bank so that the targets set up by
 the Government of India may be achieved
 
 in the prescribed time frame. During September-October 2010, Hindi
 Competitions were organized on the occasion of Hindi Day/ Hindi Month.
 To create an atmosphere of working in Hindi, 11 nos. of Hindi Workshops
 and 14 nos. of Hindi Computer Train- ing Programmes were organized at
 Banks Staf Training College, Kolkata. During the year 86 Of
 cers/Employees have passed Hindi Examination (Praveen and Pragya).
 
 The Bank organized two meetings under the banner of the Town Of cial
 Language Implementation Committee (Banks), Kolkata in capacity of being
 the Convenor. For its distinguished performance, the Bank was awarded
 with 2nd prize (Rajbhasha Shield) by the Department of Of cial
 Language, Ministry of Home Af airs, Gov- ernment of India and bank has
 received the prize in the Of cial Language Conference of East and North
 Eastern Region held on 24.03.2011 at Sikkim (Gangtok).
 
 Bank is publishing its quarterly Hindi Magazine United Darpan
 regularly and a Hindi noting Booklet published for Executives of the
 Bank. Besides, Banks Website has been updated and informa- tion in
 Hindi is also available. Number of Computers installed with Hindi
 Software in dif erent branches/of ces stands 15,800 as on 31.03.2011.
 Sri Rakesh Kumar, Dy. Director (Implementation), Deptt. of Of cial
 Language, Ministry of Home Af airs, Government of India, Nizam Palace,
 Kolkata, visited the Head Of ce of the Bank on 13.01.2011 for
 inspection to oversee the compliance of Of cial Language Policy of the
 Government in our Bank.
 
 13. Performance of Sponsored Regional Rural Banks
 
 The Bank has four sponsored RRBs viz., Bangiya Gramin Vikash Bank in
 West Bangal, Assam Gramin Vikash Bank in Assam, Tripura Gramin Bank in
 Tripura & Manipur Rural Bank in Manipur. The combined aggregate
 business positions of all the four-sponsored RRBs are as follows:
 
                                               (Amount in Rs./crore)
                                                Growth (%) during the 
                        Position as on            year ended on
 
                      31.03.2010  31.03.2011  31.03.2010  31.03.2011
 
 Total Busi-           15,435.56   18,679.55       21.29       21.02
 ness
 
 Deposit               10,751.48   12,715.71       21.42       18.27
 
 Advance                4,684.08    5,963.84       20.93       27.32
 
 The four sponsored RRBs have migrated 301 branches to CBS p lat- form
 by 31.03.2011 and have planned to migrate all their branches to CBS by
 August 2011. Under Financial Inclusion Plan the RRBs have also covered
 729 villages with population above 2000.
 
 14. Constitution of Board of Directors
 
 The Board is constituted in accordance with The Banking Companies
 (Acquisition & Transfer of Undertakings) Act, 1970 and Nationa- lised
 Banks (Management and Miscellaneous Provisions) Scheme, 1970.
 
 Sri S L Bansal, Executive Director of the Bank, Smt. Surekha Ma- randi,
 Reserve Bank of India Nominee Director , Sri Srenik Sett, Non Of cial
 Director and Sri Saumen Majumder, Shareholder Director joined the Board
 during the year and the Board of Directors extends a warm welcome to
 all of them.
 
 Sri Tulsidas Bandyopadhyay, RBI Nominee Director and Sri Suprita
 Sarkar, Of cer Employees Director vacated their respective of ces
 during the year. The Board of Directors places on records its sincere
 gratitude and profound appreciation for the valuable contribution made
 by them to the functioning the Board.
 
 The present composition of category of the Board of Directors are
 furnished herein below :
 
                                                           Date of 
 Sl.  Name of                           Nature of
                     Designation                           Assuming
 No.  Director                         Directorship         Office
 
                     Chairman &
      Sri Bhaskar
 1                   Managing           Executive
        Sen                                               01.03.2010
                     Director
 
                     Executive
 2.   Sri S. L. 
      Bansal                             Executive        01.04.2010
                     Director
 
      Sri Sanjeev    Nominee            Non-Execu-
 3.                                                       12.05.2009
      Kumar Jindal     –GOI                tive
 
                                       Non-Execu-
      Smt. Surekha   Nominee
 4.                                        tive           30.07.2010
      Marandi          –RBI
                                       Independent
 
                                         Non-Execu-
      Dr. Naina      Non-Of cial
 5.                                    tive Indepen-      15.07.2008
      Sharma         Director              dent
 
                                        Non-Execu-
                     Non-Of cial
 6.  Sri Srenik Sett                   tive Indepen-      06.10.2010
                       Director           dent
 
                       Workmen
     Sri Soumitra                       Non-Execu-
 7.                    Employee                           13.01.2010
     Talapatra                            tive
                       Director
 
                                        Non-Execu-
     Sri. Saumen     Shareholder
 8.                                    tive Indepen-      27.11.2010
     Majumder          Director            dent
 
 Board & Committee Meetings
 
 During 2010-11 the Board of Directors met 10 times. The details of
 Committee Meetings are as under
 
 Management Committee of the Board of Directors         19 meetings
 
 Audit Committee of the Board of Directors               8 meetings
 
 Shareholders Committee                                  5 meetings
 
 Risk Management Committee of the Board of Directors     4 meetings
 
 Special Committee to Review High Value Frauds           4 meetings
 
 Customer Service Committee                              4 meetings
 
 Directors Promotion Committee                          1 meeting
 
 Remuneration Committee                                  1 meeting
 
 High Powered Committee                                  3 meetings
 
 IT Sub-Committee of Board                               4 meetings
 
 Nomination Committee                                    1 meeting
 
 15. Directors Responsibility Statements
 
 The Directors conf rm that in the preparation of the Annual Accounts
 for the year ended 31st March, 2011:
 
 The applicable accounting standards have been followed along with
 proper explanation relating to material departures, if any.
 
 The accounting policies framed in accordance with the guidelines of the
 Reserve Bank of India, were consistently applied.
 
 Reasonable and prudent judgment and estimates were made so as to give a
 true and fair view of the state of af airs of the Bank at the end of
 the f nancial year and the prof t of the Bank for the year ended on
 31st March, 2011.
 
 Proper and suf cient care was taken for the maintenance of adequate
 accounting records in accordance with applicable provisions of laws
 governing Banks in India and the accounts have been prepared on a going
 concern basis.
 
 16. Proposed Dividend
 
 The Board of Directors at its meeting held on April 29, 2011 have
 recommended, subject to the approval of the shareholders and ap-
 propriate regulatory authorities, f nal dividend at the rate of 22%
 i.e. Rs. 2.20 per equity share of face value of Rs. 10/- each, to all
 equity shareholders of the Bank whose names appear on the Register of
 Members on the record date. T is will entail an outgo of Rs. 88.06 crore
 on account of Dividend and Dividend Tax.
 
 17.  Acknowledgement
 
 The Board of Directors wishes to place on record its appreciation to
 the patronage and cooperation received from all the stakeholders.  The
 Board also likes to place on record the valuable guidance and excellent
 supporThextended by the Reserve Bank of India, Govern- ment of India,
 State Government of West Bengal, other regulatory agencies and all
 other State level f nancial institutions. The Board of Directors
 appreciates the commendable services of the employees at all levels.
 
 For and on behalf of the 
 
 Board of Directors
 
 
 
 (Bhaskar Sen)
 
 Chairman & Managing Director
 
 Date : June 18, 2011
 
 Place : Kolkata