UBI aims 200% surge in net to Rs 470 crore

BS Srinivasalu Reddy

Mumbai, Aug 21: THE state-run Union Bank of India (UBI) has chalked out an ambitious plan to increase the operating profit by 50 per cent to Rs 900 crore and net profit by 200 per cent to Rs 470 crore during 2001-02 by riding on retail and agricultural advances.

Under the goal-posts set for the current fiscal, the bank has targeted to credit expansion by 18 per cent to Rs 22,000 crore, basically by giving thrust to agriculture, retail lending and export credit. As already reported by this newspaper, the bank has given thrust to treasury operations and to nearly double its income from this area to Rs 350 crore during the fiscal.

Agriculture advances are targeted to grow by 50 per cent during the fiscal to Rs 960 crore, while the target for retail lending and export credit are set at 32 per cent and 34 per cent to Rs 1,093 crore and Rs 609 crore respectively.

These financial targets have been listed under the title "The goal post 2001-02". The bank posted a net profit of Rs 155 crore for the year ended March 31, 2001. "The bank’s focus would be on consumer or personal loans, including car and housing finance.

UBI has also launched specific schemes for funding professionals, doctors to start with a scheme called ‘Union Health’, a senior UBI official told The Financial Express.

If this is found successful, similar schemes targeted at chartered accountants and lawyers would be launched during the year, he added. "Retail credit has the potential to grow even by 50 per cent this year," the official said.

After the UTI imbroglio and low spirits prevailing in the capital markets, deposits are expected to be avalanched this fiscal.