United Bank of India IPO Basis of Allotment

UNITED BANK OF INDIA

Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 on July 19, 1969.Head Office: 11, Hemanta Basu Sarani, Kolkata - 700 001, West Bengal. Tel: (91 33) 2248 7472; Fax: (91 33) 2248 9391; Email: investors@unitedbank.co.in; Website: www.unitedbankofindia.com. For further details in relation to the constitution and changes in our registered office, see the section titled "History and Certain Corporate Matters" on page 179 of the Prospectus. Company Secretary and Compliance Officer: Bikramjit Shom

OUR BANK IS PROMOTED BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF FINANCE, GOVERNMENT OF INDIA

BASIS OF ALLOTMENT

Public Issue of 5,00,00,000 Equity Shares of Face Value of Rs.10 each of United Bank of India ("The Bank" or "The Issuer") for Cash at a Price of Rs. 66/- per Equity Share (including a Share Premium of Rs.56/- per Equity Share) aggregating Rs. 324.98* Crores (the "issue"). The Issue comprised of Net Issue of 4,75,00,000 Equity Shares of face Value of Rs. 10 each to the Public ("Net issue") and a Reservation of  25,00,000 Equity Shares for subscription by Eligible Employees (the "Employee Reservation Portion"). The Issue constituted 15.80% of the Post Issue Pald-Up Capital of the Bank and the Net Issue constituted 15.01% of the Post Issue Paid Up Capital of the Bank.

# A discount of Rs.3/- to the issue Price was offered to retail individual bidders and eligible employees (the "Retail Discount"). * Pursuant to the finalisation of basis of allotment, the actual issue size amounted to Rs. 325.15 cr due to spill over from the employees category which was distributed equally between QIB, HNI and Retail category (i.e.60:10:30)

BID/ISSUE OPENED ON FEBRUARY 23,2010, CLOSED ON FEBRUARY 25,2010

The Equity Shares of the Bank are proposed to be listed on Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ("NSE")

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 66/- AND IT IS 6.6 TIMES THE FACE VALUE.

In terms of Rule 19(2)(b)of the Securities Contracts Regulations Rules, 1957 {"SCRR"). this being an Issue for less than 25% of the post-Issue capital, the Issue was made through the 100% Book Building Process wherein at least 60% of the Net Issue was allocated on a proportionate basis to QIB Bidders ("QIB Portion"). Further 5% of the QIB Portion was made available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB Portion was made available for allocation on a proportionate basis to all QIB Bidders, Including Mutual Funds, subject to valid Bids being received at or above the Issue Price. However, If the aggregate demand from Mutual Funds would be less than 5 % in the QIB Portion, The balance Equity Shares available for allocation In the Mutual Fund Portion would be added to the QIB Portion and allocated proportionately to the QIBs in proportion to their Bids. If at least 60% of the Net Issue could not be allocated to QIBs, then the entire application money would be refunded forthwith. Further, not less than 10% of the Net Issue would be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Issue would be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Further, up to 25,00,000 Equity Shares was made available for allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received at or above the Issue Price.

The Issue received 1,63,451 applications for 1,66,18,06,500 equity shares resulting in 33.24 times subscription. The details of the applications received In the Issue from Qualified Institutional Buyers, Non-Institutional. Retail Individual Investor and Employee categories are as under: (Before technical rejections)

Final Demand
A summary of the finaldemand as per BSE and NSE as on the Bid/Issue Closing date at different bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE") on March 9,2010.

A. Allotment to Employee Investors (After Technical Rejections) Including ASBA applications
The Basis of Allotment to the Employee Investors, who have bid at cut-off or at the Issue Price of Rs. 66/- per Equity Share was finalized in consultation with BSE and the shares were alloted at a discount of Rs 3/- per equity share to the issue Price of Rs 66 per equity share. The category was subscribed 0.66 times. As per the Prospectus, the unsubscribed portion of Employee Category is added back to Retail Category (2,52,330 Equity Shares), Non Institutional Investor Category (84,110 Equity Shares), QIB Category (5,04,660 Equity Shares). The total number of shares allotted in this category is 16,58,900 Equity Shares to 4,029 successful applicants. The category-wise details of the Basis of Allotment are as under:

B. Allotment to Ratail Individual Investors (After Technical Rejections) Including ASBA applications
The Basis of Allotment to the Retail Individual Investors, who have Bid at cut-off or at the issue Price of Rs. 66/- per Equity was finalized in consultation with BSE and the sharas were allotted at a discount of Rs 3/- per equity share to the issue Price of Rs 66/- equity share. The category was over subscribed 9.27 times. The total number of shares allotted in this category is 1,45,02,330 Equity Shares to 1,02,485 successful applicants. The category-wise details of the Basis of Allotment are as under:

C. Allotment toNon lnstitutional lnvestors (After Technical Rejections) Including ASBA applications
The Basis of Allotment to the Non Institutional Investors, who have bid at the Issue Price of Rs. 66/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 34.23 times. The total number of shares allotted in this category is 48,34,110 Equity Shares to 303 successful applicants.The category-wise details of the Basis of Allotment are (Sample)as under:

D. Allotment to QIBs
Allotment to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, Mutual Funds were initially allotted 5% of the quantum of shares available (14,50,233 Equity Shares), including Spill over from Employee Category to the extent of 25,233 Equity Shares and other QIBs were allotted the remaining available shares (2,75,54,427 Equity Shares) on proportionate basis, including Spill over from Employee Category to the extent of 4,79,427 Equity Shares, was allotted to other QIBs on proportionate basis.

The Board of Directors of the Bank has approved by circulation the basis of allotment of shares of the Issue vide the Resolution dated March fO,2Q10andhasaifottedthe shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices have been dispatched to the address of the Investors as registered with the depositories. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The shares allotted to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Bank is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited within seven wording days from the date of approval of the basis of allocation.
Note: All capitalized terms used and not defined herein shall have the respective meaning assigned to them in the prospectus dated March 5,2010 ("Prospectus")

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:
LINK INTIME INDIA PVT. LIMITED
C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai -400 008
Tel No: +91 22 25960320; Fax No: +91 22 25960329 Wabsite: www.linkintime.co.in; Email: ubi.ipo@linkintme.co.in