Kolkata-based UCO Bank has put around 40 loss-making branches in metro and urban areas on notice for closure or merger with other branches if they fail to turnaround and report profit by March 2007. | |
| UCO Bank has 228 branches in metros, 350 in urban areas and another 1,162 branches in semi-urban and rural areas. |
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| "Apart from focusing on restructuring to improve overall operational efficiency, the bank is putting equal emphasis on performance at the branch level "� both in terms of turnover and profitability," a senior bank official said. |
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| The bank recently revised its organisational structure. It has replaced geography-oriented four-tier administrative set up with a function-specific three-tier set up. Under the new structure, there will be more focus on each customer segment. |
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| Competition, stress on the optimal use of resources and growing use of information technology in banking was making the bank rethink the functioning of branches, another bank official said. |
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| UCO Bank has formed four focused divisions "� flagship corporate (turnover above Rs 50 crore), mid-corporate (Rs 3-50 crore), retail business and small enterprises & priority sector including agriculture. |
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| The public sector bank is also increasing lending power of senior executives of the rank of assistance general managers and above. The bank's board is meeting on August 31 to vest more powers with the chairman and managing director for taking decisions relating to major clients. |
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| The Reserve Bank of India regulations restrict banks from closing down branches in rural areas since accessibility and financial inclusion are priorities for the banking regulator. |
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