United Bank of India is looking to offer merchant banking and syndication services by next fiscal. As part of the focus on large corporates, the bank has opened three specialised corporate finance branches — one each in Delhi, Kolkata and Mumbai.

The three branches account for around 145 corporate clients and loans amounting to about Rs 30,000 crore, said Mr Bhaskar Sen, Chairman and Managing Director, UBI, while speaking at the inauguration of the Mumbai branch, on Tuesday.

Large corporates account for 58 per cent of UBI's total loan book.

The bank is also planning to introduce an incentive-based remuneration scheme for employees in this segment, Mr Sen said.

About interest rates, he said that they have probably peaked out judging by the fall in the 90-day Certificates of Deposits rates.

“I don't think there is any pressure on lending rates. As for bulk deposits, there is case for rates to come down,” he said.

While there is demand for working capital and capex loans, the bank is selective on longer term loans due to the asset-liability mismatches, Mr Sen said.

Processing centres

UBI has received also approval for setting up 26 retail processing centres, which would be opened by the first quarter of next fiscal.

This fiscal, UBI is hoping to reach 20 per cent growth in credit. Considering that the credit-deposit ratio was 62 per cent, there is still room for increasing the loan book, Mr Sen said.

The bank is not looking to raise capital immediately, as it has received Rs 308 crore from the Government through preferential allotment.

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