UBI plans to invest Rs 77 crore on technology upgrade

Public sector lender United Bank of India has embarked on a technology upgrade drive, under which it plans to spend about Rs 77 crore over the next two years.

The bank plans to invest in expanding its ATM network by 1,000 units, along with improvement in internet banking and mobile banking facilities.

"Within a month, we shall provide online stock-trading facility to our customers. We have plans to launch mobile banking, utility payment services and online trading facility in a month's time,” said Bhaskar Sen, chairman and managing director, United Bank of India.

The bank expects a year-on-year growth of credit by around 15 per cent in the second quarter, though the deposit growth was likely to the subdued, said S L Bansal, executive director, United Bank of India.

“We are stressing more on improving our credit-deposit ratio, which should increase to 68 per cent, from 62 per cent as on March 2010,” added Bansal. At present, the bank has high-cost deposit of about Rs 6,000 crore.

According to the financial inclusion plan of the bank, it will extend ICT -based banking services in 4341 un-banked villages covering 83 districts in 11 states within the financial year ending 2011-12. Out of the 4,341 villages, 1,841 villages have population of more than 2,000 and 2,500 villages have a population less than 2,000 villages.

Out of the 4,341 villages, 45 villages will be serviced through opening of brick and mortar branches and reset of them will be covered though the business correspondent model.

The bank is also exploring the scope of kiosk and mobile van based financial inclusion.