As part of its business process re-engineering (BPR) initiative, the public sector Union Bank of India plans to centralise more of its back office operations soon
This includes system for opening up of accounts, issue of TDS certificates, interest certificates for housing loans and ECS management. It follows the good response received by the bank on a pilot project started for the purpose in some centres like Mumbai, Bangalore and Hyderabad.
“We plan to centralise various back office operations like opening up of accounts, ECS management, TDS and interest certificates for housing loans during this year”, S Govindan, general manager (personal banking and operations), Union Bank told Business Standard.
The bank, which is attaching importance to value for money, committed turn around time and transparency in its operations, hopes to reduce the waiting time of the customers for availing these services. Besides, the lead generation system at the branch level will be taken forward, he added.
The bank achieved a total domestic business of Rs 2,35,376 crore during the last fiscal and aims to achieve 25 percent growth in business during 2009-10.
As a matter of policy, it will continue to focus on the mobilisation of the Current and Savings Account (CASA) in the overall deposit. CASA, which was 30 percent by the end of March 2009, is projected to increase to 35 percent by March 2010.
It has already introduced a number of technology based products and will cash in on the 1000 exclusive personal banking branches to achieve the enhanced business target.
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As a measure in that direction, the bank has trained about 5000 staff in re-skilling and personal relationship who will work for enhancing relationship with the customers. On credit front, the retail, small and medium enterprises (SMEs) and agri-business sectors will be the thrust area of the bank.
The introduction of the ‘loan automation solution’ for retail, micro-small and medium enterprises (MSMEs) and corporate portfolios is expected to streamline the turn-around-time in sanction of loans.
Further, to push credit to the SME sector, it is in the process of introducing ‘SME Saral’ system at the regional office level. While 200 branches have been designed as ‘business banking branch’ to facilitate higher flow of credit to the MSME sector, the loans to these entrepreneurs are sanctioned within 14 days.
Govindan said, the bank will open 500 new branches during the current fiscal and the required licenses have been obtained from the Reserve Bank of India (RBI). Similarly, 600 to 700 new ATMs are proposed to be opened in 2009-10. While 500 will be onsite ATMs, the remaining will be offsite ATMs, taking the total to about 2000 by the end of the fiscal, he added.