UBI to go for mid-sized acquisitions overseas
State-run lender Union Bank of India plans to expand overseas operations through acquisitions but will adopt the organic growth model within the country, a top bank official said.
"Our plan is to grow inorganically overseas. Beginning next fiscal, we will start scouting for an appropriate foreign bank which will add value to our operations," UBI Chairman and Managing Director, M V Nair, told PTI here.
The bank would look at a mid-sized entity overseas for an acquisition and will chart out its roadmap for growth over the next 4-5 years beginning 2008-09. "We will fine-tune our plans regarding an overseas acquisition then," Nair added.
A decision on which market to enter and how to enter will be taken after March next year when the bank formulates its growth strategy for the next 4-5 years, he said.
The bank’s overseas presence is marginal now with its footprint in only three locations — Shanghai and Hong Kong in China, and Abu Dhabi in the Gulf region.
Its Hong Kong office will be transformed into a full branch by end-January or early February, Nair said, adding this branch would focus on trade financing and related areas.
Domestically, Union Bank plans to grow organically by expanding its branch network. "Ideally, we would like to add around 150 branches per annum over the next two-three years," he said.
The bank would be adding around 140 branches, taking its branch strength to over 2,400 by end of this fiscal. Last fiscal, the bank had added 124 branches. The branch expansion strategy will revolve around establishing its footprint in Tier II towns, outskirts of towns and cities, growth centres and unbanked centres, Nair said.
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