State-run Union Bank of India plans to raise 10 billion rupees via debt in a month's time, Chairman M.V. Nair said on Monday.
The bank has headroom to raise up to 35 billion rupees and it would try to raise the amount by the end of 2008, he added. "We will raise as and when we require".
It would be a mix of perpetual and Tier-II bonds, he added.
The bank would like to maintain its capital adequacy ratio at around 12 percent and the ratings of its loans above 100 million rupees would relax its CAR by 0.70 percent, he said.
It was looking at a credit growth of 22 percent for the current fiscal.
The state-owned lender also plans to start insurance operations in December and a mutual fund in six months, Nair told reporters.
The bank has got the preliminary approval from the Insurance Regulatory and Development Authority and the first product would be launched by December, he said.
In December, the bank formed a life insurance joint venture with Bank of India and Japan's Dai-Ichi Mutual Life Insurance Co.
The bank was in the process of developing the business plan for asset management foray and the process would take about six months, he said.
The Mumbai-based bank has formed a joint venture with Belgian asset manager KBC Asset Management NV.
He was speaking on the sidelines of an event to launch a new logo for the bank, joining its peers such as Bank of Baroda and Canara Bank, who have undergone re-branding exercises.
Union Bank would spend 750 million rupees on advertising and publicity of the new logo and another 100-120 million to replace the signages at all its branches with the new ones, Nair said.
Shares in the bank ended 1.22 percent higher at 145.10 rupees in the Mumbai market.
Monday, September 01, 2008
UCO Bank shortlists 4 cos for fin services subsidiary partner
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.
"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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