The Hindu Business Line : Union Bank plans to set up 1 lakh self-help groups

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Mangalore Jan. 27 Union Bank of India, which has good presence in rural areas, is planning to enhance its impact in rural areas through various strategies, according to Mr M.V. Nair, Chairman and Managing Director of the bank.

In this regard, the bank is planning to form one lakh self-help groups (SHGs) by the end of the current fiscal.

Addressing presspersons here on Saturday, Mr Nair said the bank had 750 branches in rural areas and 250 branches in semi-urban areas, covering around 17,000 villages. The bank, which had set a target of forming 75,000 SHGs by the end of December, ended up forming 83,000 SHGs. "I am confident that the bank will form one lakh SHGs by the end of March," he said.

Mr Nair said the village knowledge centres (VKCs) of the bank help in harnessing technology to enhance productivity of rural population. The bank's officials, who act as relationship managers, provide inputs on crops, fertilisers, weather and the market. This enables the farmer to reap enhanced reward for his efforts, he said. The 164 VKCs established by the bank had a lasting impact on rural areas, he said. At a time when farmers were facing hardships leading to suicides in some cases, the bank came out with "Union Mitra" financial education centre concept. These centres help bring financial literacy to farmers through a process of credit counselling. Till now, these centres have been established in 51 locations in the country.

Stating that the bank was planning a global presence, he said it received permission to establish a representative office at Shanghai in China three days ago.

He hoped that the bank might be able to set up the representative office within three to four months.

The bank is planning to open 125 branches during the current fiscal. It opened 56 branches in a single day on January 2, he said.

Considering the immense growth potential in the State, the bank has drafted a three-year plan — Plan Karnataka 2007-10 — for Karnataka. During this period, the bank estimates to surpass the business mix of Rs 10,000 core in the State from the present Rs 4,500 crore, by putting in place a network of branches and other delivery channels.

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