In order to expand its presence in the northern region, Kolkata-based United Bank of India (UBI) is targeting Punjab and Haryana for increasing its branch network. The Bank plans to open seven more branches in these states by the end of this financial year.
Speaking to Business Standard, United Bank of India, CMD, Bhaskar Sen said “Majority of our branches are restricted to the East and North east, now we are focusing on the Northern region and subsequently the southern part of the country. At present we have network of 26 branches in the North comprising Chandigarh, Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir. We have opened our regional office in Chandigarh today and further we are planning to add seven more branches in Punjab and Haryana. We are also looking at setting up retail hub in Chandigarh.”
The Bank has applied for licence from Reserve Bank of India for opening up 53 branches. Out of the total, 46 branches would be in the East and the North-east. It is also planning to open 500 ATMs by the end of this financial year.
On overseas expansion, he said, “ We have repo office in Dhaka and has plans to convert it into full fledged branch in two years time.” On being asked about the new initiative, he mentioned, “ We would focus on technology based products, besides we would improve the ambience of the branches. We would introduce mobile banking in another six months. Our main thrust area is SME, retail and Agriculture.”
Backed by a favourable interest rate scenario and gains in treasury income, the Bank reported a net profit of Rs 109 crore for the quarter ended September, a 30.9 per cent rise compared to Rs 84 crore in the same period last year. Further, the Bank is targeting a growth of 18 per cent in deposits and 20 per cent in credit by the financial year- end.
Commenting upon effect of base rate, he added, “ The Base rate has helped us in improving the bottom lines besides helping the retail and SME customers. The base rate regime replaced BPLR from July 1.”
He mentioned, according to the Financial Inclusion Plan (FIP), the Bank will extend ICT based banking services in 4,341 un-banked villages covering 83 districts in 11 states within the financial year ending 2011-12.