The Hindu Business Line : Union Bank sees no slowdown in loans

Mumbai, July1 Union Bank of India hopes to achieve a net interest margin of 2.8 per cent despite the recent increase in deposit rates, said Mr M.V. Nair, Chairman and Managing Director, Union Bank of India.

He was speaking to reporters on the sidelines of a seminar on Financial Leveraging for Urban Infrastructure Investments. The bank’s recent hike in PLR by 50 basis points will also help it to compensate for the increasing cost of deposits, he said.

The bank anticipates no slowdown in corporate loans even though delay in corporate decision-making is inevitable due to existence of uncertainty in financial markets. The bank expects to maintain a credit growth of 22 per cent, he added.

Union Bank will collaborate with the Ministry of Urban Development for formulation of project finance schemes, ministry bond scheme, lines of credit to urban local bodies, micro finance schemes and priority sector lending for effective implementation of JNNURM projects. Easy access to credit will be facilitated for the urban poor through the bank’s various schemes, he added.

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