State-run lender United Bank of India is planning to knock the market in December for raising amount between Rs. 300 crore to Rs. 400 crore through its initial public offer.

However, no details were provided about the extent of dilution in the bank or the size of the public issue.

The Kolkata-based bank has a network of 1,454 branches throughout the country. The lender has plans to add around 108 branches by this fiscal.

Apart from latest development, the bank is likely to reduce its benchmark lending rate by 20 to 50 basis points, from 12.25% by next week.

The lender had earlier reduced its prime lending rate on April 1st 2009, by 25 basis points to 12.25 percent.