Union Bank of India expects to increase its net interest margins to 2.93% in 2015-16 from the current level of 2.5-2.6% on account of improvement in its current and savings accounts (CASA) ratio.
Executive director, K Subramanyam, told media persons here on Friday that the bank was aiming at improving the CASA level to 31% in the next two years and 30% in the next year from the existing level of 28-29%.
"We will continue to grow aggressively on saving deposits at or above 12%", he said.
Though interest rate cut was expected to increase credit offtake, he said that there had been no significant improvement on this front so far. The bank was not expecting the credit growth to cross 9% this year, while it was likely to increase to 10% next year.
Subramanyam, who had earlier inaugurated the bank's industrial finance branch here, said that the bank was expecting to obtain the licence for setting up its branch in Sydney in Australia this year. The bank currently has overseas branches in Hong Kong, Dubai and Antwerp and a subsidiary in the UK. It has applied for licences for opening its branches in Shanghai and Beijing.
The bank is planning to recruit 1,100-1,200 people this year. By this year end, the bank will be adding 200 more branches to its existing network of 4,000 branches across the country. Its board has agreed for raising Rs 1,386 crore through qualified institutional placement (QIP).
The business of Union Bank in Hyderabad region, which covers Telangana state, is stated to be Rs 8,700 crore. Of this, the industrial finance branch accounts for Rs 4,000 crore.
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