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Union Bank targets Rs 21.5 trn biz in FY24

The bank crossed Rs 19 trn in last fiscal; asks MSMEs to make timely repayment of loans

Union Bank targets Rs 21.5 trn biz in FY24

Union Bank targets Rs 21.5 trn biz in FY24

Hyderabad One of the leading public sector banks of the country, Union Bank of India on Friday said it is expecting to close the current fiscal (FY24) with a business of Rs 21.5 trillion. The bank did Rs 19 trillion business in FY23. The bank also said that bankers in the country are concerned about NPAs (non-performing assets) and it asked enterprises to repay loans and its interest in the stipulated period.

S K Mohapatra, CGM - Central office, and U V Rajnikantha Rao, Regional Head-Panjagutta, Union Bank of India were speaking during the closing of the two-day outreach programme. To increase its market share, the bank is looking at strengthening its services and products in 126 districts in the country. The bank aims to also increase its digital footprint through its mobile application, Vyom and its latest Alexa service on Amazon.

“We witnessed a business of Rs 19 trillion in the last fiscal. Hence, we are confident of closing this financial year with Rs 21.5 trillion. We have taken up several initiatives such as the outreach programme to connect with our customers and bridge the gap between them and the banks management,” Mohapatra said. He also added that the bank wants to spread the message of having a better mobile application, Vyom compared to that of Yono from SBI.

In response to a request from an entrepreneur, he said that the bankers are concerned about repayment of loans. “Bankers are usually worried about non-payment of loans as the same amount is circulated in the bank holdings and given as loan to other MSMEs. Hence, it would be beneficial for banks and enterprises if entrepreneurs repay loans on time.”

During the outreach programme, the Punjagutta branch of Union Bank of India in Hyderabad, disbursed around Rs 21.19 crore of loan. It received Rs 280.63 crore of new leads requesting for loans. The in-principle sanction of loan on Friday stood at Rs 213.38 crore while the bank has sanctioned Rs 94.66 crore.

Also present during the event, the president of Aleap, Rama Devi Kanneganti asked the bank officials to be empathetic towards entrepreneurs seeking loans. “Amid digitalization and commercialization, bank managers are losing personal connect with entrepreneurs. Banks should look at the turnover of the company rather than asking for collateral while approving loans. Though, marking of an NPA is not in the capacity of a bank, we request bankers to understand the struggle and responsibility an entrepreneur undergoes before marking them as NPA,” she added.

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