Kolkata-based UCO Bank today said it will finalise a foreign partner for its proposed financial services subsidiary by the end of this month.
"We have shortlisted four foreign entities for the proposed subsidiary and will decide upon the name by the end of this month," UCO Bank CMD S K Goel said.
The bank has also received the RBI approval for opening 102 new branches in the current financial year.
UCO Bank had applied for opening 126 additional branches this year to further expand its 1,967-branch network across the country.
While Goel did not divulge the names of the short-listed potential partners, sources close to the development said these include a UK-based top investment firm.
Sources added that some top corporate houses like Hero, Videocon, Adani and Sterling Biotech are also in the fray for a 25 per cent stake in the UCO Bank subsidiary, which would undertake businesses like loan syndication and sale of insurance and mutual fund products of different companies.
Goel said the bank was in the process of obtaining necessary regulatory approvals for the financial sector arm.
The state-owned bank would have 49 per cent stake in the venture, while the foreign partner would have 26 per cent as per the present regulations.
The remaining 25 per cent could be offloaded to a domestic partner.
The proposed venture would be one stop shop for all financial needs of an individual.
The venture among other activities would undertake selling insurance products, mutual fund products of different companies.
Besides, it would deal in loan syndication as well, Goel said.
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