Earlier during the year, it had tied up with the Chennai-based Indian Bank to sell its life insurance policies. Under the agreement, Union Bank will:
1) Identify 20 branches in Mumbai, through which it will facilitate sale of policies.
2) From out of these 20 branches, the bank will pick 20 junior officers, who will be assigned the task of selling. These officers will have to reach out to customers of their bank’s branches in the areas assigned. These officers will be provided training by HDFC Standard Life, which will also bear the cost of training.
3) The officers will be given targets, which they will have to achieve like they are given in the case of deposits and loans.
4) Gradually, the bank will increase the number of branches to sell policies from out of its network, which comprises 2,053 branches spread all over the country, though concentrated largely in Uttar Pradesh and Maharashtra.
5) Officers will be entitled to performance-based incentives.

The bank, in the meantime, has done well in the second quarter ended 30 September 2001. While the operating profit rose about 10 per cent to Rs 116.90 crore from Rs 105.80 crore in the corresponding period last year, the net profit after tax too increased about 10 per cent to Rs 37.30 crore. The figure in the corresponding period of the previous year was Rs 34.10 crore.

In the first half ended 30 September 2001, the net profit rose 34.40 per cent to Rs 100.30 crore, in comparison to Rs 74.60 crore in the corresponding period last year. The jump came about on the back of a 70.36 per cent increase in other income, which moved up to Rs 208 crore from Rs 122.10 crore in the corresponding period. The bank has decided not to tap the capital market for issuing equity due to poor market conditions. However it may raise tier 2 capital of Rs 100 crore towards the end of the year.