Union Bank of India (UBI) plans to expand its retail bullion

The Union Bank of India (UBI) plans to expand its retail bullion and gold coins business after conducting a successful trial run for gold coins in October 2006.

Last fiscal, UBI’s gold sales more than doubled to 32.6 tonnes compared to 14.5 tonnes a year earlier, giving it a 4 per cent market share.

The bank is aiming for a 6 per cent market share this year. “The business potential in gold is huge and we aim to tap this potential,” said Bhaskar Sen, UBI's general manager for treasury and international banking.

“We are in the process of identifying more branches for marketing of gold coins based on market potential,” Sen added. The profit margin on gold coin sales is around 5- to 6 per cent, he stated.

UBI plans to promote gold sales during the Indian festivals of Diwali, Akshaya Tritiya, Vishu, Baisakhi, Bihu, etc., which are major gold-buying occasions.