Union Bank, New India Join Hands

Union Bank of India has tied up with New India Insurance Company to market and distribute the latter's products on a commission basis, said P K Sarkar, director of the bank.

The bank would also launch a new one-time settlement scheme for borrowers who have outstandings up to Rs 25,000 or less.

The bank is targeting to retire its non-performing assets (NPA) by Rs 500 crore through the scheme before March 2002. The bank has NPAs worth Rs 2,000 crore, while it has NPAs worth Rs 144 crore in Madhya Pradesh. Union Bank is also planning to reduce lending rates.

Sarkar said, "I cannot say anything about the rate cut as it depends on various factors.'' The bank is also planning to launch 13 ATMs across the country and two of them will be opened in Madhya Pradesh.

On the new venture with New India Insurance, he said, "The bank would send its officers to the insurance company for training and at initial stage the training costs would be borne by New India Insurance."

The bank has also joined hands with HDFC Standard Life Insurance Company to sell the latter's life insurance products. "These officials would be entrusted with the task of reaching customers at a number of branches for selling policies," he said.

As part of its bankassurance plans, Union Bank will increase the number of branches selling insurance policies in a phased manner across the country. The bank has a branch network of 2,053.

According to Sarkar, the bank is planning to go public this month and the size of the issue would be Rs 200 crore. He refused to disclose the issue's launch date but said it is possible before this fiscal.