From past few months united bank of India is facing the problem of rapidly increasing bad loans. Under the chairmanship of Archana Bhargava the NPAs of the bank has hiked making the condition of the bank worst. Keeping the Deteriorating condition of the bank, bank is planning to shut some of its branches. At present bank is having 2,000 branches in country. Most of the branches are in the north eastern states.
Bank is looking for the branches that are worst in performance. Bank will soon close such branches especially in urban areas and some in rural areas as well. However as per the RBI guidelines bank cannot close the branch if it is the sole branch in that area since it will make the area unbanked. For such branches banks need to ask RBI before closure, however bank can close any branch in urban and semi urban areas.
Currently bank is having 655 branches in rural areas, 310 in urban and 380 in semi urban areas. The bank can close the branches which are loss making despite being in existence for more than 5 years.