Mumbai: Union Bank of India (UBI) plans to open 100 new branches in the country, chairman and managing director M V Nair told reporters in Varanasi.

Nair said the bank has targeted business of Rs 160,000 crore in the current financial year 2006-07.

He said the bank proposes to set up nine branches in Varanasi as the bank accelerates the pace of business. At present, UBI has 2,084 branches in the country.

"The bank has recently launched the scheme of 'General Credit Card' having a limit of Rs 25,000 for rural customers throughout the country. UBI has 560 ATMs in the country, which would go up to 1,000 in the current financial," Nair said.

UBI, he said, would cover its 1,200 branches throughout the country with core banking network by March 2007.

Nair said the bank has an agreement with the State Bank of India (SBI) under which the UBI ATM card holders would be able to utilise 5,500 ATMs of SBI in the country.

The bank, he said, is also operating 101 village knowledge centres in different states, imparting knowledge on weather, fertiliser, seeds and farming techniques to farmers.

The 85-year old Union Bank of India was inaugurated by Mahatma Gandhi and is today a public sector bank with 55.43 per cent of its share capital held by the government of India and the remaining 44.57 per cent being held by institutions, individuals and others.

The bank came out with its initial public offer in 2002 and a follow on public offer in February 2006.