United Bank of India, stayed with terrible obligations of Rs 8,546 crore, is liable to be safeguarded through a merger with Union Bank of India than through an administration implantation of capital.

As per sources, the legislature won't have any desire to re-underwrite United Bank, whose non-performing resources (NPAs) became overnight amid the residency of executive and overseeing chief Archana Bhargava.

Union Bank has a pan India presence and United is limited to east India. Union Bank has a 59% government holding versus United's 88%. Union Bank share right now exchanges at Rs 103 and United Bank of India's at Rs 24.

United brought about misfortunes in the previous two quarters after a benefit of Rs 45 crore in the main quarter (April-June 2013).

The misfortunes in the second and second from last quarter were Rs 489 crore and Rs 1,238 crore, individually, driving the Reserve Bank of India to issue a top of Rs 10 crore on advances to a borrower account.

Financiers say political obstruction assumed a noteworthy part in the bank bringing about such extensive NPAs, when there are inherent systems to signal off a potential NPA from the 91st day of non-installment of contribution.

The administration can strip its holding to people in general, however with a bleak business sector top of Rs 912 crore, such a move won't work out.

That leaves merger with a more grounded bank the main choice. Financiers say it is too soon to remark and one would need to sit tight for no less than two quarters to see the recuperation measures started by the bank.