UCO Bank to open 100 new branches

State-run UCO Bank is planning to open 100 branches across the country by the end of this financial year. Majority of the branches would be opened in un-banked areas. Also, it has plans to recruit 1,300 employees, including clerks and officers, to support its expansion plan.

In an interaction with Business Standard, UCO Bank Executive Director, V K Dhingra said: “The Reserve Bank of India (RBI) has given us licence for setting up 84 branches across the country by the end of the current financial year. Besides , we are also planning to open branches in the north eastern region. Majority of the branches would be in un-banked areas and these branches will be in addition to the 2,079 branches which UCO Bank has at present.”

“Already we have recruited 1,543 clerks and officers last year and we are further planning to recruit 1,300 people (including clerks and officers) to strengthen our retail segment,” he added.

As on date, the total business of the Bank is Rs. 1,73,000 crore and it is expecting a total business of Rs 2,02,000 crore by the end of this fiscal, by registering a 22 per cent growth in deposits and 18 per cent growth in advances.

He said the bank was also planning to come out with a follow-on public offer (FPO), which will reduce government holding from 64 per cent at present to 51 per cent. The Bank would issue 13.5 crore shares through this issue.

He also revealed that as part of capital restructuring, the bank received Rs 450 crore which has already been deployed, out of Rs 1,200 crore promised by the government to shore up its Tier-I capital. Further, the bank is expected to get the remaining Rs 750 crore in next few months.

On the performance of Chandigarh Zone, he added, “The year-on-year percentage of advances of Chandigarh Zone during the current year is 108.99 per cent as on December 4, 2009. This zone has disbursed retail loans for Rs. 445 crore and has the vision to lend Rs. 525 crore within March 2010. The zone has disbursed agricultural loans to farmers for Rs. 655 crore and taregst Rs. 800 crore loans by March 2010.”