Union Bank, IDBI Cap tie-up for online services

State-owned lender Union Bank of India has entered into a strategic tie-up with financial services provider IDBI Capital Market to offer online trading services to customers.

"The tie-up takes the bank one step closer towards its vision of becoming a one-stop shop for financial services, offering technology-based products to its customers," UBI Chairman and Managing Director M V Nair said.

IDBI Capital Market has already had agreements with a host of lenders such as Punjab National Bank, IDBI Bank, Oriental Bank of Commerce, Bank of Rajasthan and Karur Vysya Bank, to provide trading services.

Union Bank, which is currently implementing a massive expansion programme, had recently launched services like SMS Banking and Union Super Salary Account (USSA), with a view to rapidly increase its current customer base of around two crore, Nair said.

The bank added around 20,000 accounts under USSA, which was launched in October last year and intends to add five lakh new customers under this scheme in FY09 while the total customer base is expected to go up to 2.23 crore during the period, Nair said.

"We will continue to go ahead with our aggressive customer acquisition programme and business expansion plans. We expect to acquire five lakh customers under the USSA scheme in FY09 and a total of 23 lakh new customers during the period," Nair said.

On the farm sector growth, Nair said at present outstanding agriculture loans portfolio is close to Rs 7,000 crore. The bank expects to the farm credit to grow at 30 per cent in 2008-09.

The farm loan wavier will not affect the credit repayment behavior of clients in the future. The experience till date suggests that, they come forward to pay up when have ability, he added.