A recent press report said that Union Bank if India has revisited its target for credit and deposit growth downwards equating the projections of the RBI. Further the bank has set the credit growth and deposit growth targets at 18.5 per cent and 16.5 per cent respectively. As per the report, at the beginning of the fiscal the bank 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.
Mr.M.V.Nair, Chairman and managing Director, Union Bank said that the credit growth is slowing down and the margins for the corporate are still reasonably okay. However the impact on asset quality will be felt by the small and medium enterprises segment or those companies that are highly leveraged or those companies that are highly leveraged or those industries that are hit by certain developments. The example quoted by him was the textile industries.
As per the report, the bank has a new customer education initiative called the Union Chetna which is an information window for both the customers and employees. The report also stated that under this initiative information contents will be displayed on a digital screen.