The Hindu Business Line : Union Bank to enter MF biz

As part of its ‘Vision 2012’ programme, Union Bank of India is planning to diversify into mutual fund business and will also explore the possibility of entering the venture capital arena.

These were decided at the bank’s directors’ board meeting here on Monday.

Mr M.V. Nair, Chairman and Managing Director of the bank, told newspersons that the meeting also decided to look for a partner to get into credit card business.

He said that the roadmap and a partner for the mutual fund business would be finalised by the end of March next year and the bank hoped to launch it within a few months then after getting the necessary approvals.

The ‘Vision 2012’ is aimed at making Union Bank of India one of the three largest banks in the country and also becoming a global player with its presence in at least 20 countries. As of now, the bank has a branch in Shanghai in China and a representative office in Abu Dhabi. These apart, a full-fledged branch will be opened in Hong Kong in February next year.

hot growth spots

Mr Nair said that the bank was looking for inorganic growth overseas and would scout for an appropriate foreign bank to achieve it. The bank would choose ‘hot growth spots’ for locating its overseas branches.

He said that the bank would recruit another 16,000 employees over the next four years to support its diversification plans as also keeping in view the tremendous growth expected in the financial sector.

CSR initiative

The bank has identified education as an important field and it intends to participate at the level of primary and secondary education in rural areas. The Union Bank Social Foundation will take up specific projects like provision of basic infrastructure and amenities in schools in rural areas, sponsoring of poor students for higher education, donation of computers to schools and distribution of text books to students.

More Stories on : Public Sector Banks | Mutual Funds | Diversification

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