Union Bank plans China beachhead

Union Bank of India, to ramp up its international business, has sought the Reserve Bank of India's (RBI) approval to set up a representative office in China.

"The bank is looking forward to set up a representative office in China as it is a good proposition for the bank with the growing trade relations between India and China," said Kamath.

With the representative offices, the bank will be able to garner trade businesses on its own, he added.

The bank has already received the RBI's approval to set up a representative office in the UAE and Qatar, while approvals from the respective central bank's are awaited, said H S Upendra Kamath, deputy general manager, Union Bank of India.

The bank's income from international operation (non-interest income) in the fiscal ended March 31, 2004, stood at Rs 150 crore. In the current fiscal the bank's income from international business is expected to be around Rs 200 crore, he said.

At present the bank has tie-ups with 11 exchange houses overseas of which three are in Dubai, four in Kuwait, two in Qatar and two in Oman.

The bank has also tied up with about 400 banks in 85 countries to provide trade finance.

On the bank's other business initiatives, Kamath said the bank will soon start stamp-vending business for the Maharashtra government. It is also contemplating setting up a travel desk which will look into the travel needs (passport, ticketing and travel loan) of its customers.