Public sector lender UCO Bank's proposed foray into Dubai has been kept on hold due to global recession and Dubai economic crisis, a senior official of the bank has said.
"Our overseas plans are on hold as of now due to economic slowdown and Dubai crisis. We are keeping a watch of the development," UCO Bank chairman and managing director S K Goel told PTI recently.
The Kolkata-based bank was planning a joint venture in Dubai to expand its global footprint. Its been a year since the bank had announced its plan to enter in a JV agreement with a local Dubai partner to offer financial activities.
The revenue sharing was proposed to be 50:50.
"The local partner is supposed to provide infrastructure and we will be providing operational management and the revenue would be shared," Goel had said.
The bank has four overseas branches in Singapore and Hong Kong, and one representative offices each in China and Malaysia.
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The bank's overseas business was down by 3.11 per cent to Rs 12,263 crore in the 2009-10 fiscal compared to previous year, while advances was higher by 2.73 per cent to Rs 5,803 crore.
Last year, UCO Bank had put the proposed financial services subsidiary on hold due to financial crisis.
However, Goel said the proposed insurance venture was on track and it hopes to finalise it in the near future.