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Product cover image for United Bank of India: Present Fiasco and Future Plans

United Bank of India: Present Fiasco and Future Plans

Debasish Maitra; Pradip Banerjee

Product #:9B15N028
Supplier:Ivey
Discipline:Finance, International Business
Setting:India, 2013
Details:Case (PDF) • 15 pages • 2016-01-22

Subjects:

International bankingBanks and bankingBusiness managementFinance and investingInternational business

Industries:

Financial service sector

Geography:

IndiaAsia
Your Price:$9.71

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In 2013, United Bank of India (UBI), predominantly present in the eastern and northeastern parts of India, faces considerable difficulty in managing its swelling amounts of bad debt. A forensic enquiry by an external agency has identified some serious problems in the bank’s credit appraisal process, loan disbursement procedures, and non-performing assets (NPA) detection system. With the bank’s year-over-year growth of NPAs surpassing the growth of its credit, the management team faces the urgent task of developing an effective turnaround strategy to bring the bank back into a profit position.

Learning Objectives

The case is suitable for senior undergraduate or graduate courses on corporate financial strategy, management of financial institutions/services, and commercial lending and financial structuring. The scope of this case is not restricted to the finance domain alone; it could effectively be used in general management and strategy courses to examine organizational transformation and the strategies behind it. Objectives include the following:
  • To provide an overview of the general banking industry in India.
  • To help students understand the operations, management, and ownership structure of the public- and private-sector banks in India.
  • To illustrate the challenges faced by management in the public-sector banks in dealing with NPL problems.
  • To evaluate UBI’s performance.
  • To identify the factors contributing to the NPL fiasco at UBI.
  • To analyze the possible action plans for UBI to resolve its NPL problems.
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Case Study: United Bank of India: Present Fiasco and Future Plans (English version) | Ivey Publishing