Wednesday, June 16

United Bank of India to sell third party health cover to boost fee income

KOLKATA: State-owned United Bank of India on Saturday announced that it would offer third party health cover to its customers. It has entered into a partnership with Star Health & Allied Insurance Co for the same a few days before.

The Kolkata-based lender thus become a corporate agent of the health insurer.

This arrangement would help the loss-making bank boost its fee income.

UBI reported Rs 883 crore net loss in the second quarter, which was more than double the net loss of Rs 345 crore seen in the year ago period.

UBI has been under Reserve Bank of India’s prompt corrective action directives while chief executive of the bank Ashok Kumar Pradhan expressed hope of coming out of it by March 2019.

The government is in the process of infusing Rs 2,159 crore in the bank as part of Rs 28,615 crore capital infusion to be done in about half a dozen banks.

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