MANGALORE: Union Bank of India has planned to expand business and establishment in Karnataka with special emphasis on Mangalore. It has a three-year perspective plan to in which it intends to surpass a business mix of Rs. 10,000 crore in the State catapulting from the present Rs. 4,500 crore.

Addressing a press conference here on Saturday, the Chairman and Managing Director, M. V. Nair, said the bank was going ahead with the plan of putting in place a network of branches and other delivery channels, specially the ATMs. The bank already had 90 branches in Karnataka and would add another 50 branches, subject to getting permission from the Reserve Bank of India (RBI).

Mangalore features prominently in the business expansion plan of the bank. From the present business level of Rs. 150 crore spread over four branches in Mangalore and Udupi districts, the bank plans to open immediately four more branches in these two districts. Additionally, 17 branches would be set up in Hassan, Chikmagalur, Uttara Kannada and Kodagu districts with a projected business turnover to Rs. 500 crore by 2010. A business support base at Mangalore would take charge of these 25 branches Mr. Nair said.

The bank was aiming at forming one lakh self-help groups (SHGs). Already, 83,000 SHGs had been formed and about 45-46 per cent of them had been linked.

To strengthen the agro and rural development programmes, the bank has set up 167 Village Knowledge Centres which take up extension work. On an experimental basis, the bank had introduced biometric smart card in Warangal district of Andhra Pradesh and the results were encouraging, Mr. Nair said.

Bangalore Correspondent writes:

Syndicate Bank net up

Syndicate Bank reported a net profit of Rs. 226.12 crore for the third quarter ended December 31, 2006, an increase of 20.3 per cent over the corresponding period of the previous year.

Briefing reporters here on Saturday, the Chairman and Managing Director, C. P. Swarnkar, said, "We have managed to grow our advances by 48 per cent and push up employee productivity." The s gross profit for the quarter under review was Rs. 328.10 crore against Rs. 290.76 crore during the corresponding period of the previous year.

Gross income rose to Rs. 1,784.31 crore from Rs. 1,165.21 crore. Outstanding deposits were Rs. 75,294 crore, a 52 per cent increase. But this also had an impact on the net interest margins that dropped to 2.69 per cent in Q3 from 3.18 per cent in the beginning of this financial year.

The bank managed to cut its gross NPA (non-performing assets) to 3.33 per cent of advances in the period under reference from 4.22 per cent.

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