Synopsis: Union Bank of India will continue to prioritize retail growth, retail deposits, and CASA enhancement. The bank’s retail sector is growing steadily, with significant contributions from the agriculture sector and a stable corporate loan growth.
Union Bank of India is maintaining its strategy of focusing on retail growth and enhancing its retail deposits and Current Account Savings Account (CASA) ratio.
Shri Ramasubramanian S, Executive Director of Union Bank of India, emphasized the bank's commitment to expanding its retail portfolio and achieving a robust CASA ratio.
The bank also plans to utilize bulk deposits strategically to acquire quality assets.
Union Bank of India is steadfast in its strategy to prioritize retail growth, expand retail deposits, and enhance its CASA ratio.
Shri Ramasubramanian S, Executive Director of Union Bank of India, highlighted the bank’s continued focus on retail deposits and CASA, which form the cornerstone of its growth strategy.
The bank's retail sector is experiencing significant growth, particularly in the agriculture segment, which has seen over 21% growth due to the strong performance of the agri gold loan portfolio.
Retail loans have grown by more than 12%, while the MSME sector, although muted, is still contributing with a 7.5% growth.
Corporate loan growth remains stable at 8.9%, reflecting the bank's cautious approach in managing low-yield advances to maintain a comfortable Credit-Deposit (CD) ratio of 73%.
Despite the challenging liquidity environment in the banking system, Union Bank has reported a year-on-year deposit growth of over 8%.
The bank's Liquidity Coverage Ratio (LCR) stands strong at over 137%, ensuring good liquidity management.
The bank is also focused on maintaining a Return on Assets (ROA) above 1%, having already achieved this target earlier than projected.
This achievement is attributed to various strategic initiatives aimed at improving ROA.
Union Bank's approach to bulk deposits is strategic, targeting high-cost deposits only when required to secure good quality assets.
This balanced strategy ensures that the bank maintains a healthy growth trajectory while managing its asset quality effectively.
Disclaimer: The information presented in this article is based on statements from Union Bank of India's Executive Director and recent financial performance data. It is intended for informational purposes only and should not be construed as financial advice. Readers are encouraged to perform their own research and consult with a financial advisor before making any investment decisions.
