Market regulator, the Securities and Exchange Board of India (SEBI) has imposed Rs 2 lakh penalty on United Bank of India (UBI) for violating certain regulations, including acting as a debenture trustee to one of its borrowers. According to SEBI, an inspection of UBI's books of accounts, for the period 1992-2013, shows certain deficiencies in its functioning as debenture trustee. The case pertains to UBI acting as debenture trustee for Power Finance Corp (PFC) wherein some violations of norms have been found.
United Bank of India is one of the 14 major banks which were nationalized on July 19, 1969. After nationalization, the Bank expanded its branch network in a big way and actively participated in the developmental activities, particularly in the rural and semi-urban areas in conformity with the objectives of nationalization.
