Union Bank of India growth slows in Q4
The effect of the global meltdown is being felt in India with demand for loans drying up and banks projecting a lower growth this quarter.india Updated: Mar 24, 2009 23:24 IST
The effect of the global meltdown is being felt in India with demand for loans drying up and banks projecting a lower growth this quarter. The Union Bank of India is expecting a lower growth in the fourth quarter of this year.
“We have seen a straight growth in the first three quarters of this year, don’t expect a 45 per cent net profit coming in this quarter,” said M V Nair, chairman and managing director of Union Bank after the inauguration of their advanced call centre on Tuesday.
The bank, which plans to add 500 new ATMs to its existing network in the next financial year, is also planning to reduce its benchmark prime lending rates (BPLR) by 50 basis points to 12 per cent from April 1.
However, Nair pointed out that a cut in interest rates may not lead to an increase in lending. He said adding that the growth would pick up in the next financial year.