Don’t miss the latest developments in business and finance.

UCO Bank eyeing Rs 6 lakh cr biz by FY16

Image
Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 10:58 PM IST

Public sector lender UCO Bank today said it is eyeing a two-fold growth in total business to Rs 6 lakh crore by FY16 through customer acquisition and network expansion.

The bank's total business stood at Rs 2.45 lakh crore as of March, 2011, and the Kolkata-based bank wants to take this to Rs 3.5 lakh crore by March, 2013, and Rs 6 lakh crore by March, 2016, field General Manager R K Agrawal said here.

It is also looking to raise the number of its branches to 4,000 by March, 2016, from 2,239 now and its automated teller machine (ATM) network to 5,000 from the current 681, he added.

Over the next five years, the bank is targeting an increase in the number of account holders to 4.8 crore from 1.40 crore at present.

A thrust will also be on overseas branches, Agrawal said, but refused to give more details. At present, the bank has two branches each in Hong Kong and Singapore and has a representative office in both Malaysia and mainland China, Agarwal said.

As part of its drive to raise low-cost current and savings account (CASA) deposits, the bank has joined its peer IDBI Bank to waive charges on a slew of transactions like making demand drafts, payment orders, fund transfers, etc.

UCO Bank expects its CASA ratio to move up to 35% from 24% through the special drive, christened, 'Total Freedom', Agrawal said.

The waiver will be operational for 174 days from July 11 to December 31 this year and the bank aims to open 25 lakh accounts as part of the drive, he added.

State-run IDBI Bank, which was also plagued by a low CASA ratio, had launched a similar scheme last September, following which its CASA ratio moved up.

The CASA ratio of banks like UCO Bank is dwarfed by other public sector banks like State Bank of India, whose CASA deposits are around 50%, which helps in profitability.

Also Read

First Published: Jul 13 2011 | 4:30 PM IST

Next Story