A recent press report said that Union Bank of India has revised its target for credit and deposit growth downwards, in line with the revised projections of the Reserve Bank of India.
Reports said that the bank has set the credit growth and deposit growth targets at 18.5 per cent and 16.5 per cent respectively. The bank has lowered its target for credit growth to 19 per cent, from 22 per cent and deposit growth to 17 per cent, from 19 per cent at the beginning of the fiscal.
Mr. M. V. Nair, Chairman and Managing Director said that credit growth was going down and the margins for corporates are reasonably okay but the impact on asset quality will be felt by the small and medium enterprises segment or those companies that are highly leveraged or those industries that are hit by certain developments.
The bank is one of the largest state-owned banks in the country. The bank is well known among the people for its efficient value-added services, sustained growth, consistent profitability and development of new technologies. It offers credit cards, home loan, union demat, Kisan ATM, International debit card, online tax payment facility, Railway e-ticketing kiosk, etc., services to its customers through core banking solution.