The Hindu Business Line : Union Bank plans to go global

"We are talking to various merchants bankers to identify a bank which has branches abroad," said Mr K. Rathnakar Hegde, Executive Director of Union Bank.

Mr Hegde said such an acquisition would help Union Bank mark its presence abroad. With the WTO regime setting in, international trade volumes will significantly go up and in such a context the bank needs branches in other countries, he said.

Union Bank is in the process of setting up two branches in the Gulf - one in Doha and another in Dubai. It is awaiting clearance from authorities in these countries, Mr Hegde said at the sidelines of a press conference.

When asked about the scale of operations that Union Bank would like to take over through the proposed acquisition, he said, "Any size is okay for us. We only need the availability."

Union Bank is planning the inorganic growth in line with the trend in the Indian banking system to consolidate. The Government is also in favour of consolidation through mergers and acquisitions so that the country's banks achieve the size and scale comparable to that of global banks.

The bank had informed the Bombay Stock Exchange some time ago that in terms of the business plan finalised by it for the year 2004-05, it was targeting a 27 per cent growth in advances with a judicial mix of growth in retail and other segments. It has also planned to deploy all of its incremental deposits into fresh credit for the year 2004-05, the communication had stated. The bank's shares closed at Rs 73.80 at the BSE on Friday last.

Mr Hegde said Union Bank is opening 100 `retail boutiques' across the country as part of its efforts to streamline rural and semi urban banking. These boutiques will have ATMs and a few marketing officials to sell the bank's products.

The bank will add another 50 branches this year to its existing list of 2,025 . The number of ATMs will go up to 500 by the end of this year from 270, Mr Hegde said.

Meanwhile, the bank has set up a Rural Development Training Institute to impart training to unemployed youth. The bank plans to open 11 such institutes in the country with the first two centres coming up in Kerala.

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Union Bank plans to go global — Eyes bank with branches abroad