Published:
Union Bank to ‘moderate’ expansion plans
Commenting on the move, bank’s Chairman and Managing Director MV Nair ,in a report in Business Standard, said: “These are difficult times. So, we want to save cost. In addition, though we are hiring, it takes time before the staff is properly trained to be posted at new branches”. The bank’s operating expenses increased to Rs 543 crore ($115.53 million) in June 2009 against Rs 416 crore ($88.51 million) in June 2008 - an increase of 35 per cent year-on-year, mainly due to implementation of project Nav Nirman, a scheme launched by Nair to put Union Bank among the top three public sector banks by 2012.
The Mumbai-based bank was one of the few banks in the country which had chalked out major expansion plans. In comparison, other banks such as the State Bank of India, ICICI Bank and IDBI Bank are planning to add more than 500 branches in 2009-10. These three banks will go ahead with their expansion plans.
In contrast to the Union Bank’s jeremiads of difficult times, an IDBI Bank executive said “Recruitments are less costly now. In addition, it is a good time to enter into property lease agreements as rates will go up soon”. Between April and December this year, IDBI Bank plans to add 200 new branches and will open the remaining branches in the fourth quarter. At the end of March, the erstwhile development financial institution had 595 branches.
The Mumbai-based bank was one of the few banks in the country which had chalked out major expansion plans. In comparison, other banks such as the State Bank of India, ICICI Bank and IDBI Bank are planning to add more than 500 branches in 2009-10. These three banks will go ahead with their expansion plans.
In contrast to the Union Bank’s jeremiads of difficult times, an IDBI Bank executive said “Recruitments are less costly now. In addition, it is a good time to enter into property lease agreements as rates will go up soon”. Between April and December this year, IDBI Bank plans to add 200 new branches and will open the remaining branches in the fourth quarter. At the end of March, the erstwhile development financial institution had 595 branches.
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