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United Bank sets aside Rs 250 crore for IT

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Niladri Bhattacharya Kolkata
Last Updated : Feb 05 2013 | 3:06 AM IST
United Bank of India (UBI) has committed an investment of Rs 250 crore on information technology for the next financial year.
 
The investment will cover a massive roll out of core banking solutions (CBS), on line share trading facility, phone banking and cash management services among others.
 
Speaking with Business Standard, P K Gupta, chairman and managing director, UBI, said, "The main challenge in the coming year would be the application of technology for business growth."
 
The bank has already rolled out CBS in 201 branches covering 57 per cent of its business and plans to increase the number to 350 branches by the end of this fiscal and double that number by March, thus covering 90 per cent of its total business.
 
The bank's virtual private network (VPN) covers 660 links (branches and regional offices) and is slated to cover 750 links by the end of this financial year.
 
Having launched depository services in August 2007, the bank will shortly offer online trading of shares under a tie-up arrangement with IDBI Capital Services.
 
The Kolkata-based public sector bank is poised to introduce cash management services for its corporate and institutional customers. It is also developing a medium-term strategic business plan in collaboration with IIM, Calcutta.
 
In an attempt at interfacing with the customers, the bank is set to launch a mobile-based CRM application in partnership with Sybase 365 to deliver SMS-based inquiry services.
 
"All these initiatives are a part of our vision to emerge as a dynamic, techno-savy, customer-centric, progressive and financially sound bank," said Gupta.
 
The bank's non-interest income rose by 65 per cent to Rs 173.45 crore in the first half of this fiscal. The chairman stressed that, to augment this growth, the bank would continue to leverage its network for the distribution of third party products such as bank assurance, mutual funds and government business.
 
The bank has roped in Tata AIG Life Insurance Company as a strategic partner for its life insurance venture and launched a child insurance scheme in December 2007. "We are going to launch some exclusive products in this area," he added.
 
Meanwhile, the bank is finalising an ATM sharing arrangement with the Indo-Nepal ATM network managed by the India-based Financial Software and System and Smart choice Technologies, Nepal.
 
The bank has 157 ATMs of its own. Moreover, its customers have access to more than 3,500 ATMs belonging to 12 other banks under the cash tree arrangement.
 
The bank has also started a disaster recovery centre at Mumbai to combat any kind of technology problems that could arise during an emergency situation.
 
"We are working hard to provide innovative technology solutions that would contribute to customer service," Gupta said.

 
 

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