The Hindu Business Line : Core banking solution — United Bank appoints Ernst & Young as adviser

"The plan is to bring 300 of our branches under core banking solutions by March 2008; these branches account for nearly 60 per cent of the bank's total business," Mr P.K. Gupta, Chairman and Managing Director (CMD), told Business Line. "The cost estimated is about Rs 100 crore."

The first branch under the system should roll out by September 2006, he added.

Expressions of interest would be shortly invited for the selection of vendor while the request for proposals to the selected vendor would be sent in due course. "We'll opt for the primary vendor route in preference to the multiple vendor route," Mr Gupta said.

Right now, all 1,315 branches of the bank are fully computerised, but mostly on standalone basis. Only 95 branches in 22 locations have some networking arrangement under the multiple-branch banking facility. By March 2008, all the targeted 300 branches would be networked.

"The accent now will be on expanding the credit base and mobilising as many low-cost deposits as possible."

Mr Gupta hopes to achieve more than 30 per cent growth in advances in 2005-06 over the total advance of Rs 11,839 crore as on March 31, 2005.

Right now, the share of the low-cost deposits in the bank's total deposits of Rs 26,000 crore is around 45 per cent, which is targeted to reach 48 per cent by March 2007.

The expansion of credit would be achieved, as he explained, through more advances to both corporate and retail sectors. "The corporate credit gives absolute growth while the retail credit gives stability and yield."

Mr Gupta sounded bullish about the prospects of the growth of corporate credit.

"In every management committee meeting, held once in 15 days, we are sanctioning loans worth several hundred crores of rupees to the corporate sector, particularly to firms in infrastructure like power, telecom, ports, and roads."

The advance to the infrastructure sector till September this fiscal amounts to Rs 1,587 crore, representing 11.8 per cent of the total advances.

Steel had been the single largest segment having maximum exposure, about eight per cent of total advances of Rs 14,000 crore. Mr Gupta added: "Frankly, we do not want to go beyond the 10 per cent limit."