Union Bank Sets Aside Rs 125 Cr Aid For Orissa

The Union Bank has provided more than Rs 100 crore assistance for rebuilding of dwelling places damaged by the cyclone of October 1999 in Orissa.

Besides, the bank plans to provide another Rs 25 crore house building assistance to the employees of the state, Central and public sector units affected by the recent floods in the state.

According to P L Gairola, general manager, Union Bank, east zone, of the pledged amount, Rs 7 crore has been sanctioned and disbursed.

In the October 1999 cyclone alone around two million dwelling places were damaged, while lakhs of people were rendered homeless in the unprecedented monsoon floods earlier this year. Among other institutions, Hudco has provided around Rs 500 crore house-building assistance in the state.

Gairola said his bank had a business mix of Rs 942 crore in Orissa of which Rs 162 crore had been invested in priority sectors such as agriculture, small scale industry and services.

Stating the bank has achieved the annual credit plan target in the state in the last financial year, he said the new focus of the bank in the state is retail banking.

To lure customers and hike profit, the bank has repackaged some of its earlier products and launched new products in this segment. The products, ranging from 'union miles to union smiles', are targetted to cater to the needs of burgeoning middle class, he added.

In Orissa the bank has invested Rs 99 crore in government securities of major public sector units, particularly in the power sector.

"We are the leading banker to the power sector companies namely Gridco, OPGC, OHPC and Cesco. Our exposure to the sector is Rs 84 crore in the fund-based segment and Rs 57.50 in non-fund based segment," said S C Sinha, assistant general manager, overseeing Orissa operation.

Union Bank has 46 branches spread over 21 districts in Orissa. Sinha said the new extension counter inside the Infocity, an upcoming information technology hub where Infosys Technologies has put up shop, will provide requisite tech-driven banking services for developing the campus as a world class software development centre.