The Hindu Business Line : Union Bank Q1 loan growth at 34 per cent

IN TIE-UP: Mr M.V. Nair, Chairman & Managing Director, Union Bank of India, (left) with Mr Samir Shah, MD, Reuters South Asia Ltd, at a press conference to announce the tie up of the bank with Reuters for online forex trading in Mumbai. — Shashi Ashiwal

Mumbai , July 7

Union Bank of India saw a loan growth of 34 per cent in the first quarter of 2006-07 as against 29 per cent during the same quarter last year. The increase in the benchmark prime lending rate has not affected credit growth, said Mr M.V. Nair, Chairman and Managing Director, Union Bank of India.

Deposits for the same period grew at over 20 per cent against 18 per cent last year.

However, there could be some pressure on income on the treasury side because of rising interest rates, Mr Nair said. In order to meet the gap between credit and deposit growth, the bank plans to increase the share of low-cost deposits to total deposits.

Tie up with Reuters

He was speaking to reporters on the sidelines of a press conference to announce a tie up to offer Reuters Trading for Foreign Exchange and Reuters Trading for Bullion for the bank's customers.

Using this service, customers of the bank such as corporate customers, exporters and importers can access real time prices from the bank for rupee-dollar and other cross-currency trade through the Reuters platform.

As the whole process is online the operational risk is reduced for both the bank and its customers, said a senior official of the bank.

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