UBI to open 11 branches in unbanked gram panchayats of Bengal during 2009-10

Based on the recommendations of T M Bhasin Committee, appointed on behalf of West Bengal State Level Bankers’ Committee, 938 unbanked gram panchayats have been identified for opening bank branches in West Bengal.

According to a press release by United Bank of India (UBI), the bank has obtained licenses for opening its 11 new branches in such unbanked gram panachayats.

On his recent visit to Kolkata, Reserve Bank of India Governor D Subbarao had asked banks to stress on financial inclusion.

RBI has asked the lead banks to draw a plan by March 2010 for opening banking outlets in villages with a population of more than 2,000 by March 2011. It has also asked all commercial banks, including foreign banks to get their respective board approval for formulating a three-year plan for financial inclusion by March 2010.

“We want each bank to draw up their own model, and are consulting the Indian banking association in this regard,” he had said. Echoing the same views, Pranab Mukherjee, Union finance minister also asked banks to increase credit flow to the unbanked areas, on the occasion of opening ceremony of UBI's branch at Mithipur in Murshidabad recently.

S C Gupta, Chairman and Managing Director, UBI, said that out of the 130 branches to be opened during 2009-10, 29 branches would be opened in West Bengal and of them, 11 branches will be opened in unbanked Gram Panchayats.

As on March 2009, the total business of the bank stood at Rs 90,263 crore with 20.20 per cent annual growth.

During the end of the second quarter of the current fiscal, the bank registered a business growth of 41.40 per cent on a year-on-year basis. Gupta said the bank has already achieved 100 per cent of the branches under CBS as on September 13, 2009, being the first among the eastern region banks.

He also stated that the problem of high equity of the bank had been resolved with the proposed reduction of equity to Rs 266 crore from Rs 1532 crore to enable it to bring its public issue.

The bank will hit the capital market by January-end or early February 2010 to mop up about Rs 350-400 crore of fresh capital.