Union Bank in overseas pitch

After opening representative office in Shanghai recently, the Mumbai-based Union Bank of India will set up three more overseas offices at Beijing and Guangdong in China and the UAE.

It will also set up branches in Hong Kong and Doha within a few months. In addition, the bank is also looking forward to set up its branch in Singapore.

The bank has received Reserve Bank of India (RBI) approval for opening branches in Hong Kong and Doha and also for its representative offices at Beijing, Guangdong and UAE, whereas RBI approval for the Singapore branch is still awaited.

"We are awaiting clearances from the regulatory authorities of the respective countries. Once we receive the required approvals, we will kick-start our operations. These offices will provide consultation and offer market information services to industrialists and businessmen of the various countries who wish establish their businesses in India and vice-versa," P Y Nagar, general manager, Union Bank, said.

The bank intends its CASA (current account saving account) deposits to contribute 36 per cent of the total deposits by fiscal 2008 and 40 per cent of the total deposits by 2010.

To achieve this target, one of the initiatives undertaken by the bank is the relaunching of its existing product called 'Union Classic Current Account', which offers a slew of concessions to its customers, including remittances, collection of cheques and free fund transfers across various slabs.

"Considering the various concessions and free fund transfers that we are offering in this product, there will be some income sacrifice, but since we are targeting new customers, we expect the increase in volumes to compensate for the loss," Nagar added.