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Union Bank Of India Plans Expansion, Mulls Entry Into Wealth Management

Vanessa Doctor

31 March 2011

Union Bank of India, a state-owned entity, is mulling plans to venture into the wealth management industry in an attempt to increase revenue from fee-based transactions, media reports show

The decision follows on the approval the Securities & Exchange Board of India granted recently for the bank to launch a mutual fund business in the country.

In an interview with the Press Trust of India, MV Nair, chairman and managing director of Union Bank, reportedly said that the search for a foreign partner to launch the new wealth arm will take place after arrangements for its new asset management unit are completed, possibly after the next five to six months.

The bank is also reportedly planning to expand to other countries, starting with a branch in Antwerp, Belgium and in Sydney, Australia, in addition to a new subsidiary in London. At present, Union Bank of India has a representative office in Sydney and London, and a full-fledged branch in Hong Kong.

The Reserve Bank of India has already given its go-ahead for the expansion.