Union Bank will focus on retail lending and aim at improving customer service, says its new CMD, D Sarkar.
Addressing the senior officers of the bank across the country, Sarkar said that the bank should focus on lending to farmers, small businessmen, productive sector and retail sector. He said that considering the large network of branches and a strong delivery channel and technology platform, the ratio of retail advances is very low. "Every Indian is aspiration to own a car and house and we should look at converting these aspirations into business," he told his staff.
Sarkar, former executive director of Allahabad Bank took charge at Union bank of India after M V Nair retired on March 31.
The bank has over 3200 branches and 3800 ATMs and its total business - advances and deposits - has touched Rs 4 lakh crore as on March 31.
He also stressed on the need to focus on customer services which would enable bank to gain new customers and retain old customers. Besides, he said bank should also focus on recovery of bad loans and should rigorous monitor all loan accounts to prevent them from slipping into the bad loan category.
Sarkar said that that he expects Reserve Bank of India to cut rates in April policy since liquidity is still very tight which in turn will prompt banks to lower lending rates. Union Bank has lowered its lending rates in December by 10 basis points to 10.65%
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