Friday, July 18, 2008

UCO Bank scouting foreign partner for proposed subsidiary - July 18, 2008

UCO Bank is scouting for a foreign partner for its proposed subsidiary in financial services segment, in a bid to increase its fee based income. The proposed venture would be a one stop shop for all financial needs of an individual. The venture, among other activities, would undertake selling insurance and mutual fund products of different companies. The state-owned bank would have 49 per cent stake in the venture while the foreign partner would have 26 per cent, as per the present regulations.

It would take 4-5 months to form the venture as the bank is in process of seeking in-principle approval from the RBI and government. The bank will shortly appoint a consultant which would help in scouting the partners as well as working out details of the project. The bank is talking to some consultants like Ernst & Young and Pricewaterhouse Coopers. On its branch expansion, Goel said the bank would open about 126 branches this year.

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