Mumbai: Public sector lender Union Bank of India (UBI) plans to set up 125 branches and 500 ATMs in the coming year and by cover 700 additional branches under the CBS network by March next year.

The bank would be ready to comply with the revised Basel II norms by the end of the current financial year.

UBI would also be ready to comply with the requirements of the revised Basel II norms by March 2008, agency reports quoting chairman and managing director M. V. Nair said.

Speaking after opening UBI''s representative office in Shanghai, China, its first such facility overseas, he said the bank has procured software to compute capital as per standardised approach for credit risk.

He said the asset quality management of the bank is effective with net non-performing loans to net loans ratio at 0.96 per cent as of March 2007.

Nair said the bank is keen to open a branch in Hong Kong and further expand operations in China to tap the growing opportunities.

The Shangai office will carry out liaison function to facilitate trade and business opportunities between the two nations. The bank will also provide consultation and market information services to Chinese industrialists and entrepreneurs.

UBI, meanwhile, reported record rise in quarterly operating profit at Rs758 crore for March 2007 as against Rs420 crore in the previous year, registering a growth of 80.48 per cent.

"The bank aims to reach a business mix of Rs1,85,000 crore by the end of March 2008, a growth of approximately 25 per cent . Of this, Rs1,05,000 crore will be deposits and Rs80,000 crore will be advances," said C. Abraham, deputy general manager, Union Bank.