Rajkiran Rai G from Puttur , MD and CEO of Union Bank shares initiatives of Bank at Mangalore

Mangaluru: Rajkiran Rai G., Managing Director & Chief Executive Officer of Union Bank of India today interacted with the media representatives at Mangaluru. Rai discussed the growth plans of  Union Bank of India in the state and shared the initiatives of the Bank:

• Bank has entered into Corporate Agency tie-up with General Insurers Bajaj Allianz General Insurance Co. and Cholamandalam MS General Insurance Co. to offer variety of financial products under one roof.
• In accordance to the prevailing economic scenario, the Bank has revised its savings bank interest rate to 3.50% for balance upto 25 lacs.
• Bharat Bill Payment System is single bill payment platform which will cover repetitive payment for everyday utility services such as electricity, water, gas, telephone (postpaid) and DTH television services. The same has been provided through Bill present module in internet banking.
• A new scheme, ‘Union Trade Plus’  has been Introduced for small traders requiring finance facilities upto ` 5.00 crore and for promoting adoption of digital channels Bank has waived rentals for the 1st year on first PoS terminal under the scheme.
• The Bank has launched mobile based recovery application “Union Recovery App” for effective recovery in NPA Accounts.
• The Bank is authorized for Goods and Services Tax collection from customers. The Bank is collecting GST through offline (over the counter) and online (for customers having internet banking facility) modes.
• The Bank's Board, has approved total capital raising of  `6350 crore during FY 2017-18 in the form of core equity, AT 1 and / or Tier 2 capital, with equity raising not exceeding `950 crore (including premium) and raising of AT 1 and/or Tier II not exceeding  `4800 crore. The Bank proposes to raise equity  capital for an amount upto `2000 crore through Rights Issue and/or Follow On Public Offer and/or Private Placement, including Qualified Institutional Placements in the first tranche during the FY 2017-18.

Overview

Established in the year 1919, and having its first head office inaugurated by the father of nation, Mahatma Gandhi, Union Bank offers variety of products and services for retail, agriculture, MSME, large corporate and NRI customers. The Bank has strong network of 4282 branches across the country. There are 4 overseas branches {Hong Kong. DIFC (Dubai), Antwerp (Belgium) and Sydney (Australia)}, 3 representative offices (Shanghai, Abu Dhabi. Beijing) and 7500+ ATMs (incl. 1685 Talking ATMs).

The Bank is a one-stop financial hub for customers, also selling life insurance product through Its joint venture Star Union Dai-ichi Life Insurance Company and mutual fund products through Union Asset Management Company Private Limited, its wholly owned subsidiary.

Union Bank is positioning itself amongst the youth and the NextGen customers by providing tech- savvy services. Besides branches, Bank offers alternative delivery channels like ATMs, Digipurse, mobile wallet; M Passbook (an app based passbook); Union Selfie (an app based account opening); Unstructured Supplementary Service Data (USSD) - Android based application for mobiles without GPRS facility; Unified Payment Interface (UPl) - Mobile based application enabling interoperable payments and Ucontrol, app based credit card control.

Bringing more convenience to customers, the Bank’s 'Union Xperience’ branches provide automation like self service passbook printing, cheque deposits machine, phone banking hot-line etc. The Bank has taken several other digital initiatives: IMPS through branches - ours is the first Bank to do so; Missed call facility for Mobile Banking & Account balance; SMS based value added services. Further, keeping pace with India’s Digital transformation, the Bank in association with Visa has launched Business Debit Card, Usecure Credit Card and Signature Credit Card. Alternative delivery channels are preferred by customers , 2/3rd of total transactions in the Bank are through these channels.

Business Brief

The Bank has a business mix of  `6,70,971 crore, with deposits of  `3,75,796 crore and advances of  `2,95,175 crore as of June 2017. The CASA portfolio of the Bank stood at  `1,33,412 crore with savings deposits contributing 80%. The Bank’s operating profit for Q1/FY18 Increased by 26.5% YoY to reach ` 2,057 crore and net profit stood at `117 crores. Further, Retail, Agriculture & MSME sectors collectively called as RAM, grew by 15% over the previous year, now contributing 55% of domestic loan book.

About Union Bank of India in the state of Karnataka

Union Bank of India started its operations from the state of Karnataka in the year 1958. Today, Bank is present In all 30 districts of the state with 164 branches, of which more than 45% branches are located in the rural and semi-urban centers. For a greater focus, the Bank has  established its zonal office at Bengaluru and regional offices at Bengaluru. Belagavi and Mangaluru.

As at end of June 2017, total business of the Bank in the state was `24,023 crore, comprising

deposits of `11,550 crore and advances of `12,473 crore. Bank has focused approach for making credit available to all the productive sectors like agriculture, micro and small enterprises and Infrastructure.

Union Bank is actively pursuing the goal of Financial Inclusion in the state of Karnataka. Bank covers 82 Sub Service Areas covering 234 villages having 87,629 households for banking facilities. Further, the Bank also covers 103 Urban wards having 46,843 households.

Bank has adopted 5 villages (Ayerahally, Gangwara, Kumtoor, Sakalwana & Yaliwal) in the state as Union Adarsh Gram for their all round socio-economic development and converting them as model villages.

Under the Pradhan Manrti Jan Dhan Yojana (PMJDY), as on August 23, 2017 the Bank has more than 3.07 lakh accounts in the state of Karnataka, having a balance of  `27 crore. 1.55 lakh Rupay Card has been issued under PMJDY and 2.49 lakh PMJDY accounts have been linked with Aadhaar.

Union Bank of India will continue with its efforts to deepen the reach of banking services in the state of Karnataka. Bank will extend its technology banking to bring convenience, speed and cost-effectiveness for the customers.

BRIEF PROFILE-RAJKIRAN RAI  G.

Rajkiran Rai G. has joined Union Bank of India as Managing Director & CEO on July 01, 2017. Born on 19th May, 1962, Rajkiran Rai G. is an agricultural science graduate and also a certified member of Indian Institute of Bankers.

Rai has more than three decades of rich banking experience including heading Industrial Finance Branch, Regions and Zonal Offices. He started his career in 1986 as an Agricultural Finance Officer in Central Bank of India, and has the rich experience of heading various branches at different parts of the country for more than 17 years. On his elevation as General Manager, he was given the responsibility of heading Human resource Development Department. He was the Field General Manager of Mumbai Zone of Central Bank of India, when he was elevated to the post of Executive Director of Oriental Bank of Commerce.

He was also serving on the Board of Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.