Public-sector lender Union Bank of India has decided to set up 67 new branches across Maharashtra during the current financial year, in order to expand its footprints.

The bank currently has 361 branches in Maharashtra, which do business worth Rs 73,444 crore for it. It intends to focus on SME segment of Maharashtra for lending purpose.

The bank has 1,899 ATMs nationally and the number would hit 2,500 by March 2010.

In addition, the lender also plans to introduce cash withdrawal facilities using hand-held devices in Maharashtra, under which the business-officials appointed by the bank provide transaction facilities at customers' residence or work place.

Apart from latest development, the bank in joint venture with Belgium-based KBC Group, is planning to foray into mutual funds business by December this year. The lender hopes to receive Sebi's approval to set up the firm by June 30.

It should be noted that the bank has entered into an agreement with KBC Group for the mutual funds JV in November last year.

Under the terms, Union Bank will hold a stake of 51 per cent in the company, while the balance will be held by KBC Group.

Union Bank plans to spend Rs 48.07 crore in the JV by December while investment worth Rs 64.93-crore will be contributed from KBC. The bank plans to change its 200 branches as dedicated centers for the mutual fund operations.