UBI To Offer Utility Payment Services

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In an effort to enhance income from fee-based services, Union Bank of India (UBI) plans to offer soon to its customers the ‘utility payment services’ in addition to the existing service like marketing insurance products, mutual funds, demat services etc.

According to Mr KSM Rao, general manager for southern region, the bank proposes to offer the service shortly in major metros and gradually extend to other cities. “The bank’s customers can utilise the services of the bank to pay telephone and other utility bills,” he added.

He was in Hyderabad in connection with the launch of the operations of the bank’s yet another fee-based service, ‘corporate agency’ for life insurance services.

The bank has entered into an agreement with HDFC Standard Life to market their life insurance and pension products. The Union Bank has obtained composite licence for life and non-life products as ‘corporate agent’ from Irda & RBI to market insurance products. It has deployed over 100 bank officers to undergone mandatory training as per regulatory norms.

The bank has increased the non-interest income by 40 per cent in the third quarter of the current year moving to Rs 188.35 crore in the Q3 from Rs 134.16 crore for the same period last year. During the quarter under review the profit on sale of investment has increased to Rs 105 crore from Rs 51 crore for the same period last year.