The Hindu Business Line : Union Bank ramping up bullion biz

Union Bank of India plans to ramp up its retail bullion business. "The bank conducted a test run in October 2006 for gold coins and was a huge success," said Mr S. Rajendran, Deputy General Manager, International Banking Division, Union Bank of India. The bank plans to capitalise on the forthcoming festivals of Vishu and Akshaya Tritiya to formally roll out the business.

It plans to market the coins through 100 select branches located in key residential and market areas. "We are planning to give incentives to the staff in the form of coins and overseas training," said Mr Rajendran. The bank saw more than a 100 per cent jump in gold sales at 32,622 kg in 2006-07 against 14,484 kg in the previous year. It imported around 32 tonnes valued at around Rs 2,639 crore in 2006 - 07 and has a market share of 4 per cent, which it wants to raise to six per cent. About 90 per cent of its bullion business comes from the wholesale segment.

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