Union Bank of India ties up with SBI Life

Union Bank of India has tied up with SBI Life to provide a group life insurance scheme for housing loan borrowers in Andhra Pradesh called 'Union Home Plus'.

Addressing a press conference, K Rathnakar Hegde, executive director of Union Bank of India, said, "The scheme offers insurance for the housing loans availed from the bank against the risk of death due to any cause. All existing and prospective housing loan borrowers of the bank are eligible to obtain this insurance cover for a nominal premium."

Even joint borrowers (maximum of two) are eligible to take the insurance for the full loan amount. Under the scheme a customer can be insured between Rs 25,000 to Rs 50 lakh for a period of five to 20 years.

The bank allows additional loan for the single premium payable in advance. For loans up to Rs 7.5 lakh, the borrower has to furnish a declaration of good health.

According to Hegde the total housing portfolio of the bank was around Rs 1,900 crore during the financial year 2003-04, which constitutes around 32 per cent of the total retail credit. "This year the plan is to increase it to 40 to 45 per cent," Hegde said.

Union Bank of India in Andhra Pradesh has 121 branches with a total business of Rs 3,432 crore of which Rs 1,672 crore was in deposits and Rs 1,760 crore in advances.

The bank's lending to the priority sector in the state was Rs 896 crore which constitutes around 51 per cent of the total advances. The advances towards agriculture was Rs 438 crore during the previous fiscal.

Hegde said 152 branches of Union Bank across the country have already been brought under the core banking solutions platform. This number will be increased to 500 branches by the end of the next fiscal.

Union Bank, which has a network of 2,014 branches at present, has secured the licence for setting up representative offices in Dubai and Doha. Hegde said the bank is awaiting permission from the central banks of these countries.

The bank till now has 250 automated teller machines (ATMs) of its own and under agreements with other banks the customers have access to 1,000 ATMs across the country. During the current financial year, the bank plans to install another 250 ATMs.