UCO Bank to merge branches, raise deposits in turnaround plan

Govt had sent letters to 10 banks asking them to lay out a revival road-map for availing funds

The Kolkata-based UCO Bank has embarked upon a cost-cutting plan that involves branch rationalisation and CASA growth.

The Centre had sent letters to 10 banks, including UCO Bank, asking them to lay out a revival road-map for availing government funds. The letter said some staff benefits could be restructured temporarily.

However, on opposition by unions, salary cuts were not included in UCO Bank’s turnaround plan. Instead, the plan includes merger of unviable branches, focus on CASA mobilisation, restrictions in lending to corporate entities, and depending on sectors like agriculture, retail, and micro, small and medium enterprises for loan growth.

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