State-owned Union Bank of India (UBI) today said it has sought financial assistance to the tune of Rs 1,800 crore from the government to meet credit growth in the coming years.
"We have requested the government for the capital infusion," Union Bank of India Chairman and Managing Director M V Nair told PTI on the sidelines of India Economic Summit here.
Asked about the quantum, Nair said that it was about Rs 1,800 crore as the bank intended to have a credit growth higher than the industry average.
The bank has adequate capital to meet the credit growth for current fiscal, he said adding that the capital assistance was required for business expansion in the coming years.
It is to be noted that the government has decided to give financial assistance to public sector banks with an objective to enhance capacity to lend to productive sectors.
The World Bank had committed $2 billion (about Rs 10,000 crore), with 30 year maturity, that is expected to help select public sector banks expand credit for infrastructure development, small and medium enterprises, and the rural economy.
Talking about interest rate, Nair said there is no immediate plan to cut deposit rates.