Public sector lender, Union Bank of India has said that its project for financial inclusion will reap results (profits) soon.
"Going by our experience with the financial inclusion project, which we call ‘banking for the new bankable class', this will turn in profits sooner than later, especially when the cash transfer facilities under Adhaar scheme starts flowing in," Union Bank Chairman and Managing Director, Mr M V Nair said.
"For us, this is not a loss making business. Some of the segments such as remittance facilities for the migrant labourers as also those for the milk and fruit vendors, under the inclusion project are already profitable," said Nair.
"The MNREGA (National Rural Employment Guarantee Scheme) payments may remain in loss for some more time but then the government is subsidising it."
"At Union Bank, we always believed in the opportunity at the bottom of the pyramid and our innovative approaches have worked well so far and we hope this will continue to be so. This has given us the confidence to move into financial inclusion space well in advance".