Union Bank Unveils Cash Management Services

Union Bank of India (UBI) today launched cash management service (CMS) for its corporate customers having a turnover of Rs 10 crore and above. This service initially will be available at 35 centres across the country.

"Thinning margins is leading banks to increase their focus on non-fund based activities. Union Bank's CMS -- Union Express -- has been launched to provide our corporate customers a whole bouquet of services and also diversify sources of non-interest income," V Leeladhar, chairman and managing director, Union Bank of India, said.

CMS gives top executives instant access to their company's bank accounts anytime, anywhere. It helps them view cash position, move funds between accounts, reduce trade cycles, pay bills, schedule payments, request stop payments, and control access to accounts.

 

"Once our core banking solution is in place, we can extend the CMS to 500 centres," Leeladhar said. He pointed out that 24 clients of the bank can use the service and, down the line, this number is expected to go up to 100. In the first year of operationalising the CMS, the bank is expecting a transaction volume of around Rs 2,000 crore.

Leeladhar said 20 officers of the bank are undergoing the mandatory 100 hours training with the HDFC-Standard Life for selling life insurance products. In addition, the bank will also be distributing mutual fund products from the HDFC stable.

Union Bank is also close to inking a memorandum of understanding (MoU) with New India Assurance for selling general insurance products.

The bank recently kicked off bullion banking business from its Zaveri Bazaar branch. "Bullion business, whereby gold and silver is imported and sold to local customers, is less risky as transactions are on consignment basis," Leeladhar said.

He pointed out that credit offtake from the corporate sector was not satisfactory. In the first quarter of 2002-03, a large chunk of the Rs 200 crore advances was on account of the retail sector. Deposits of the bank increased by Rs 200 crore in the reporting quarter.