UCO Bank eyeing Rs6 trillion biz by FY16

UCO Bank eyeing Rs6 trillion biz by FY16

Mumbai: Public sector lender UCO Bank on Wednesday said it is eyeing a two-fold growth in total business to Rs6 trillion by FY16 through customer acquisition and network expansion.

The bank’s total business stood at Rs2.45 trillion as of March 2011, and the Kolkata-based bank wants to take this to Rs3.5 trillion by March 2013, and Rs6 trillion by March 2016, field general manager R. K. Agrawal said.

The bank is also looking to increase number of branches to 4,000 by March 2016, from 2,239 now and its automated teller machine (ATM) network to 5,000 from the current 681, he added.

Over the next five years, the bank is targeting an increase in number of account holders to 4.8 crore from 1.40 crore at present.

A thrust will also be on overseas branches, Agrawal said, but refused to give more details. At present, the bank has two branches each in Hong Kong and Singapore, and has a representative office in both Malaysia and mainland China, Agarwal said.

As part of its drive to raise low cost current and savings account (CASA) deposits, the bank has joined its peer IDBI Bank to waive charges on a slew of transactions like making demand drafts, pay orders, fund transfers, etc.

UCO Bank expects its CASA ratio to move up to 35% from 24% through the special drive christened ‘Total Freedom’, Agrawal said.

The waiver will be operational for 174 days from 11 July to 31 December this year and the bank aims to open 25 lakh accounts as part of the drive, he added.

State-run IDBI Bank, which was also plagued by a low CASA ratio, had launched a similar scheme last September, following which its CASA ratio moved up.

The CASA ratio of banks like UCO Bank is dwarfed by other public sector banks like State Bank of India, whose CASA deposits are around 50%, which helps in profitability.