United Bank of India expects better credit demand from Q3 2010

Kolkata, August 1, 2010 (Calcutta Tube) City-based public sector United Bank of India (UBI) expects credit disbursals to grow from the third quarter (October-March) of the current fiscal (2010-11) on better demands from infrastructure and steel sectors.

‘We are getting lot of proposals from infrastructure sector and we are going to start disbursement soon. Apart from this, demand from steel industry is strong,’ Bhaskar Sen, chairman and managing director of the bank, told reporters here Thursday.

‘Traditionally, peak season starts in October. We have sanctioned many advances but we haven’t started with disbursement. The slackness in the credit growth in the first two quarters will now recede.’

The bank’s total exposure in steel industry is around Rs.4,000 crore, it is around Rs.9,000 crore in infrastructure sector.

Till June 30 sanctioned proposal in infrastructure sector is around Rs.17,000 crore, out which Rs.8,700 crore has been disbursed. ‘It happens in phased manner,’ he said.

The bank expects year-on-year advances growth in the current fiscal to be around 20 percent over last fiscal’s base of Rs.39,000 crore.

The bank also plans to invest around Rs.77 crore over the next two years towards more ATMs and strengthening its technology-based services like Internet banking and tele-banking.

‘We plan to add 500 ATMs in the first phase. These ATMs will come up more in eastern and north eastern India,’ Sen said.

All the branches of the bank’s sponsored four Regional Rural Banks would be migrated to core banking solution platform latest by Sep 30, 2011.

As per the financial inclusion plan, UBI would extend Information and Communication Technology (ICT)-based banking services in 4,341 un-banked villages covering 83 districts in 11 states within 2011-12.

‘Out of 4,341 villages, 45 villages will be serviced through opening of brick and mortar branches and rest 4,296 villages will be covered by ICT-based services through banking correspondent model,’ he said.

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