Union Bank of India is one of largest state-owned banks in India and is listed on the Forbes 2000. The Bank's business segments include Treasury Operations, Retail Banking Operations, Corporate Wholesale Banking and Other Banking Operations. They offer various types of deposits such as savings bank deposits, current deposits, current and savings account (CASA) deposits, and term deposits.
The Bank's advances portfolio includes large corporate advances; micro, small and medium enterprises advances; agriculture advances, and retail advances. Their retail advances include home loan, vehicle loan, education and other retail loans. Their investments portfolio includes investments made in government securities, state development loans and other approved securities.
Union Bank of India was originally incorporated on November 11, 1919 in Mumbai with the name The Union Bank of India Ltd. In the year 1921, the Bank shifted their registered office to Mumbai Samachar Marg, Fort, Mumbai, which was inaugurated by Mahatma Gandhi. The Bank entered a growth phase in the 1960s and they aligned their activities in line with the national priorities.
In July 19, 1969, the Bank was nationalised and the name of the Bank was changed to 'Union Bank of India'. Pursuant to nationalization, the Bank sponsored four regional rural banks in 1972. In the year 1975, Belgaum Bank Ltd, a private sector bank was amalgamated with the Bank.
In the year 2001, Staff Training College, Bangalore, the Bank's staff college acquired ISO 9001 certification. In the year 2002, the Bank undertook their initial public offer of equity shares and the equity shares were subsequently listed on the BSE and NSE. They introduced a new scheme called 'Union Express Remittance scheme' for providing service to NRI in West Asia. The Bank made a tie up with New India Insurance Company for market and distributed the products of New India Insurance Company on a commission basis. Also, they made a tie up with two IT companies to develop core-banking solutions.
In the year 2003, the Bank launched Core Banking Solution providing 'Anytime Anywhere Banking'. They launched 2 new schemes, namely NRI Foreign Currency Loans and Domestic Resident Foreign currency accounts for the benefit of NRI and FCNR (B) customers. The Bank signed an agreement with Corporation Bank to share their Cash Management System infrastructure. Also, they launched Union BillPay, a convenient utility bill payment service for their customers in association with Billdesk.
During the year 2004, the Bank opened the new representative offices at Dubai (UAE) & Doha (Qatar). They made a tie up with HDFC Standard Life for providing bank depositors an insurance cover under group policy with a target to bring in 50,000 customers under risk cover. Also, they entered into a banc assurance tie-up with the Export Credit Guarantee Corporation Ltd (ECGC) for marketing the latter's export credit insurance products.
In April 7, 2004, the Bank made an agreement with SBI Life Insurance Co Ltd to make available to the Bank's Home Loan borrowers' life insurance cover on group basis. They launched 'Union Miles Scheme', an exclusive two-wheeler finance scheme along with TVS Motor Company. They inaugurated their retail finance boutique at Ghatkopar (East) in Mumbai. During the year, the Bank was one of seven new Indian entrants to the Forbes 2000 list of the world's biggest and most powerful companies.
In the year 2005, the Bank launched Unioncard, which is international credit card and international debit card in association with VISA. They commenced clearing bank operations with the NSE and BSE for settlement of funds and securities obligations under Cash and Future and Options Segments. Also, they introduced Union White Card for dairy units.
During the year 2004-05, the Bank opened 23 new branches, 14 new Extension Counter and upgraded 23 Extension Counters into full-fledged branches. They made a tie up with Principal PNB Asset Management Company for distribution of their mutual fund schemes. Also, a study by ASSOCHAM Eco Pulse identified the Bank as 'number one in terms of return to investors' among banking stocks during fiscal 2005.
During the year 2005-06, the Bank opened 31 new branches, 6 extension counters and upgraded 5 extension counters into full fledged branches. The Bank jointly with Dena Bank made a tie-up with Small Farmers Agri-business Consortium (SFAC). Also, they made a tie-up with LIC to unveil group insurance.
During the year 2006-07, the Bank opened 124 branches including upgradation of 9 extension counters, mergers of 2 branches and conversion of one branch into Satellite Office. They launched the sale of gold coins of 99.99% purity in the denominations of 5 gm, 8 gm and 10 gm at competitive rates. The Bank and Bank of India joined hands with Infrastructure Development Finance Company Ltd for loan syndication.
During the year, the Bank entered into a MoU with IL&FS Ltd to establish a platform for providing banking and custodial-cum-demat services to Foreign Institutional Investors investing in the Indian capital market. Also, they entered into an MoU with Bank of India and Dai-Ichi Mutual Life Insurance Company, a leading insurance company of Japan for floating a joint venture insurance company in India.
During the year 2007-08, the Bank opened 155 branches, which included upgradation of 18 extension counters. They used alternate delivery channels such as ATMs, Internet Banking, Tele-Banking/ SMS banking as important tools to optimize the customer satisfaction. Also, they added 377 ATMs, taking the ATM network to 1,146 ATMs.
During the year, the Bank launched SMS Banking for providing various types of account information to customers through their mobile phones. In May 18, 2007, they opened their first Representative Office at Shanghai, Peoples Republic of China. In December 1, 2007, they opened a representative office at Abu Dhabi, UAE.
During the year 2008-09, the Bank opened 197 branches that included up-gradation of 48 extension counters and installed 644 ATMs. In May 7, 2008, the Bank opened their first full-fledged overseas branch in Hong Kong, which carries out normal commercial banking operations like acceptance of Deposits, Trade Finances, ECB and Syndicated loans.
During the year, a State of the art 70-seater advanced call centre became operational at Technology Centre, Powai (Mumbai). They launched new transaction products such as 'Prepaid Cards' (Gift and Power Pay cards), 'Online NEFT' for funds transfer through Internet Banking in addition to 'Online RTGS', thereby adding to the existing array of products to meet customer needs.
During Financial Year 2008-2009, the Bank launched Wealth Management Services for HNI clients through two service providers. Wealth Advisors Pvt. Ltd. is the Service Provider for the clients from South & North of India and Edelweiss Securities is the service provider for HNI clients from West & East of India. Also, they made a tie up with Emkay Securities for providing Online Trading Services to their valued clients.
During the year 2009-10, the Bank opened 247 new branches & 536 ATMs taking the total to 2805 branches and 2327 ATMs. As part of their global expansion initiatives, the Bank opened two representative offices at Sydney in Australia and Beijing in China. Also, they opened one Currency Chest at Azamgarh during the year.
During the year, the Bank forayed into acquiring business and started merchant enrollments across the country for installation of Point of Sale (POS) terminals accepting both VISA and MasterCard cards. Their JV Mutual Fund company 'Union KBC Asset Management Company' received in-principle approval from SEBI and their product is likely to be launched during the financial year 2010-11.
In April 1, 2010, the Bank opened a representative office in London. Also, they received approval from RBI for opening of branches at Shanghai (China) and Antwerp (Belgium) and representative offices at Johannesburg (South Africa) and Toronto (Canada).
During the year 2010-11, the Bank opened 211 branches, taking the total number of domestic branches to 3,015 branches. Also, they opened a brancha in Hong Kong. The Bank added 307 automated teller machines to their network and issued more than 1.65 million debit cards.
During the year, the Bank received approval from the Reserve Bank of India for converting the representative office at Sydney into a branch and the representative office in London (UK) into a subsidiary. Also, the bank has has approvals for opening a branch in Antwerp (Belgium) and representative offices at Johannesburg (South Africa) and Toronto (Canada).