Kolkata, Jun 29 (IANS): United Bank of India is looking at a 12.8 per cent growth in business to clock a figure of Rs 2.20 lakh crore in the current fiscal and the state-run lender is also planning to raise up to Rs 1,000 crore capital this year, an official said on Thursday.

"We are looking at a business of Rs 2.20 lakh crore from the current level of Rs 1.95 lakh crore in the current financial year. The bank is projecting a 10 per cent growth in advances and 8 per cent in deposits in 2017-18," United Bank of India MD and CEO Pawan Bajaj told shareholders here at the 8th Annual General Meeting of the bank.

With the growth projection in place, the bank needs to raise more capital in order to become self-sufficient in terms of capital by March 2019 when the Basel III norms become fully applicable, he said.

"We have decided to raise up to Rs 1,000 crore capital this year but in which modes it would be raised has not been decided," he said on the sidelines of the AGM.

The lender sought shareholders' approval to raise up to Rs 1,000 crore in tranches through different modes.

The bank will strive to reduce its dependence on large corporate advances which are risky, capital consuming and unyielding. The gross non-performing asset (NPA) ratio showed an upward trend due to low credit off-take, he said.

"The bank has taken a steep target of net reduction of gross NPA by 10 per cent from the present level in 2017-18 through recovery and upgradation, a sizeable portion of it from written off accounts," Bajaj told shareholders.

"This reduction in NPA coupled with the targeted credit portfolio of close to Rs 75,000 crore in March 2018 is likely to bring down the gross NPA to a slightly more acceptable level," he added.