Union Bank in ATM talks with two other banks

Union Bank of India is in ATM sharing talks with a south-based public bank and a Mumbai-based private bank.

If the alliance fructifies, then the bank's customers can transact business through nearly 2,000 ATMs.

"This arrangement will enable our customers to access ATMs at locations where we do not have a presence. We are working out the nitty-gritty of the user charges with the two banks," V Leeladhar, chairman and managing director, said at a press meet here today to announce the implementation of quality management system (ISO-9001-2000 certificate) in 64 branches and three extension counters across the country.

The CMD, however, declined to reveal the names of the two banks. The three-way alliance will see close to 2,000 ATMs being interconnected - 500 ATMs of the south-based bank and over 1000 ATMs of the Mumbai-based bank and Union Bank's own ATM network, which is expected to be increased up to 250 by December 2003 as against the current 105.

The securitisation legislation coupled with the Reserve Bank of India designed one-time settlement scheme led to about 250 borrowers coming to a compromise settlement with the bank.

"We have recovered about Rs 80 crore from these borrowers in the fiscal gone by. More recoveries are expected in the current fiscal," Leeladhar said.

Thus far, 20 branches of Union Bank have been brought on the core banking solution platform. In the next one-and-a-half years about 500 branches (covering 65 per cent of the total business) is expected to be brought on the core banking platform.