Union Bank targets Rs 1,00,000 cr business mix

Union Bank of India has drawn up plans to achieve a business mix (deposits plus advances) of Rs 100,000 crore in 2004-05 against Rs 81,553 crore in 2003-04.

In order to attain its 'Goal Post 2004-05' objective, it is targeting a 14 per cent growth in deposits and 27 per cent growth in advances.

"Currently, the bank holds Rs 3,500 crore worth of excess statutory liquidity ratio securities. Further, it has another Rs 3,500 crore locked up in short-term advances at sub-prime lending rate.

" Returns from the SLR deployment and short-term advances earns us only between 5 per cent and 7 per cent. Hence, we are making efforts to convert the resources into working capital and term loans so that earnings are better. This will also help us achieve an incremental credit-deposit ratio of 100 per cent against 80 per cent now", chairman and managing director, V Leeladhar, said.

The bank expects its deposits to grow from Rs 50,603 crore as of March-end 2004 to Rs 60,000 crore by March-end 2005. Advances are seen increasing from Rs 30,950 crore as of March-end 2004 to Rs 40,000 crore by March-end 2005.