Union Bank of India to look at securitisation
Our Banking Bureau
23 September 2005
Chennai: The public sector Union Bank of India (UBI) is looking at securitising a small portion of its advances sometime this fiscal. According to chairman K Cherian Varghese, UBI has bought assets of other banks to the tune of Rs 665 crore. "We have bought Rs 165 crore worth of car loans and Rs 500 crore of other loan accounts. We are now planning to sell some portion of our loan portfolio."
Meanwhile the bank is on an expansion spree; it is opening 100 new branches and 300 more automated teller machines (ATM). "Most of the new branches will be in smaller cities and in new residential localities." Presently the bank has 2,056 branches.
Speaking about the bank's performance this fiscal, he said, "As on 9 September 2005, the total business stands at Rs 1,08,002 crore — deposits and advances stood at Rs 63,881 crore and Rs 44,121 crore."
In order to meet the Basel II capital adequacy norms the bank is considering issue of 4.5- crore equity shares to the public at a price to be determined later. Post issue, the government's holding may come down to 55.45 per cent from 60.85 per cent.