The Hindu Business Line : United Bank fine-tunes credit delivery system

UNITED Bank of India, which aims to turn around by wiping out its accumulated losses and reducing NPAs to manageable levels by 2006, has unveiled a set of initiatives aimed at better interaction with borrowers.

The bank, according to Mr Parkash Singh, CMD, has already modified its lending policy . "We have tried to add value to the current credit delivery system," he said, adding that a general manager has been delegated to handle a special cell (called `corporate business group') for very large proposals. Mr Singh was addressing members of Indian Chamber of Commerce here. The bank has also fixed specific time limits for the disposal of credit applications. A branch manager, for instance, would need to take a decision and submit complete information within 10 days, while a regional manager would have to do the same within seven days (from the date of receipt from the branch concerned). And at the head office level, a General Manager or an Executive Director would be required to take decisions within three days.

Mr Singhfelt that the "compliance culture" in the country was quite good. "In the days ahead, there would be increased emphasis on corporate behaviour and shareholder value, while lenders would become more competitive and savvier. There would be more social responsibilities for bankers as well," he said.

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