Mumbai: State-run Union Bank of India expects difficult market conditions to slow its treasury income in the current quarter, a top official said on Thursday.
“We’ve had a 74% growth year-on-year in our treasury income for the last three quarters but we expect a slower growth during this quarter,” said M V Nair, chairman and managing director.
“The income from treasury was not as good as we had during the last nine months,” he said on the sidelines of a conference to announce an on-line broking tie-up with IDBI Capital Market Services Ltd.
The base has grown higher and the market was not too good, he said, without quantifying the expected growth. However, the bank expects its core fee-based income to continue growing by 35%, he said.
He said the tie-up for on-line broking would help the bank in scaling up its number of depository accounts to 200,000 by March 2009 from 130,000 now.
“It will also attract new types of customers such as HNIs (high networth individuals) and young customers,” and help garner more low-cost deposits.
IDBI Capital expects 80% of its customers to come from similar tie-ups with banks by March 2009, managing director and CEO S. Muhnot said, adding its current customer base was 40,000.
The brokerage firm already has tie-ups with its parent IDBI Ltd, Punjab National Bank, Oriental Bank of Commerce, Bank of Rajasthan and Karur Vysya Bank