Union Bank frames lending for mid – corporate segment

By Pradeep Yuvaraj | September 25, 2011

A recent press report said that Union Bank has framed mid – corporate banking vertical from micro, small and medium enterprises (MSME) banking vertical. This plan has been implemented by focusing on the credit requirements of companies with a turnover ranging from 100 – 500 crore.

The bank has carried out restructuring last month and this resulted in a transfer of loans amounting to Rs. 15,000 crore to the newly created mid-corporate segment from MSME segment or line of business.

The MSME vertical of Union bank which is a private sector bank now deals with loan offers for companies with turnover of Rs.100 crore. The loan portfolios of the MSME line of business after inter – vertical transfer of loans is about Rs. 45,000 crore. The bank has appointed Mr.S.K.Sangar, General Manager, as the Head of mid – corporate banking.

Across the country around 20 large branches would be allocated as the mid – corporate branches. This plan of lending loans to mid – corporate has gained momentum because they make good return of about 12 – 13 per cent.

On the other hand, large companies wanted loans either at a benchmark lending rate of the bank which is prevailing around 10.75 per cent or at the minimum spread over this rate.

The bank’s large corporate has also undergone restructuring and last year this department was divided into two segments namely origination and sanction each headed by a general manger which was again merged now. The large corporate vertical deals with loan proposals for companies with Rs.500 crore as turnover.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Articles Glossary Tags: , ,

About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

Leave a Reply

Your email address will not be published.