State-owned Union Bank of India plans to enter the wealth management business in partnership with a foreign player to increase its fee-based income, after recently receiving Sebi nod for entering into the mutual fund sector.
"Once the asset management business is in place, we will start the process of looking for the internationally reputed player for our proposed wealth management business," Union Bank of India Chairman and Managing Director M V Nair said.
Possibly after next 5-6 months, the bank will start scouting for a partner to offer the best in class wealth management products and services, he said.
Last week, Union Bank of India got the approval from the market watchdog Sebi to enter the mutual fund arena.
The bank had tied up with the Belgian financial firm KBC Asset Management to enter the MF business in November, 2008.
After getting shareholders' approval, the bank moved the Sebi for approval in early 2009.
Union Bank holds 51 per cent stake in the JV, which has a capital base of Rs 50 crore, while the balance is with the Belgian firm.
On overseas expansion plan, Nair said the bank plans to set up a subsidiary in the United Kingdom and a branch in Australia and Belgium, and is expected to get regulatory approval for the same in the next six months.
"We hope to get approval from the respective regulators in the next six months," he said.
The bank has already got nod from the Reserve Bank of India for setting up operation in these countries.
The bank plans to open a branch in Antwerp (Belgium), Sydney (Australia). At the same time, a subsidiary in the UK which can cater to the customers in the European region.
Currently, the Mumbai-based bank has representative offices in Sydney (Australia) and London (UK).
Besides, the bank has a full-fledged branch in Hong Kong. The branch carries out normal commercial banking operations such as acceptance of deposits, trade finance, External Commercial Borrowing (ECBs) and syndicated loans.
