Union finance minister Pranab Mukherjee today said the government was likely to increase allocation for welfare schemes.
This apart, he said the government was confident of extending banking services to all villages with a population above 2,000 by 2012. The government had identified 73,000 such villages, to be covered under a financial inclusion plan under which banks will have to cover initially unbanked villages with this much population through either a brick and mortar branch or business correspondents or like alternatives.
Rs 1,150 cr for UBI by March Union Bank of India said it expected to get Rs 1,150 crore as government capitalisation through preferential allotment of shares by March. The bank's tier-I capital was thus expected to rise to 8.37 per cent, from 7.9 per cent, said M V Nair, chairman and managing director, on the sidelines of today’s iniaguration ceremony.
The bank had a headroom of raising Rs 4,500 crore as tier-II capital, he said. Its deposit growth till now was close to 18 per cent, while credit growth was 24 per cent.
“The pressure on liquidity will lessen in the last quarter. As the credit growth is faster than deposit growth, the incremental credit ratio is 132 per cent,” said Nair.
By the end of the year, the bank hoped to achieve credit growth of 23-25 per cent and deposit growth of 20 per cent.
By the end of this financial year, the bank expects a 22 per cent growth in overall business to Rs 3,50,000 crore. The bank has set a growth target of 25 per cent for 2011-12.