— Photo: K. Murali Kumar

MAXIMISING RETURNS: M. V. Nair, Chairman and Managing Director, Union Bank of India, addressing a press conference in Bangalore on Friday.

BANGALORE: Union Bank of India has launched a new scheme that offers good returns, higher level of liquidity and safety to investors in a bid to mobilise Rs. 3,500 crore in the medium term.

The Union Cash Certificate Scheme would offer an interest rate of 8 per cent annually and the annualised yield on the deposit for 36 months, 48 months and 60 months worked out to 8.94 per cent, 9.32 per cent and 9.72 per cent, respectively, M. V. Nair, Chairman and Managing Director of the bank, told reporters here on Friday. Senior citizens would get an additional interest of half a percentage point.

The issue price of the cash certificate will be the discounted value of the maturity proceeds with quarterly compounding of interest at the applicable rate. The cash certificates will be issued in nine denominations.

The scheme, which opened for subscription on September 1, will close on October 31.

Corporate Desk adds:

Addressing presspersons in Chennai in connection with the launch of the product, R. Viswanathan, General Manager, said the South Zone has targeted to collect Rs. 600 crore with Tamil Nadu accounting for Rs. 165 crore. According to M. K. Ravivarma, Deputy General Manager, launching schemes such as the `Union Cash Certificate' offering attractive yields will not in any way affect the mobilisation of low-cost deposits as these schemes formed part of term deposits.

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