Union Bank of India to foray into MF business – Zee News.com

Union Bank of India would make a foray into the Mutual Fund business by December, a top official said on Thursday. The Bank had already received approval from Reserve Bank of India and was awaiting nod from SEBI, Union Bank of India Chairman and Managing Director M V Nair said here.

"We have already got the approval from RBI.We should get the approval from SEBI by next two months," he said. "After getting the approval the product should be launched by December 2009."

Nair was here to officially announce the bank's mobile banking facility under the brand 'UMOBILE' under which one can make bill payments, purchase movie tickets and transfer funds apart from other banking services.

He said that the Bank's vision was to achieve Most Preferred Bank status by 2012.

The Bank currently has 2,650 branches and 1,950 ATMs across the country.

DHFL ties up with UBI

In a bid to step up home loans in the eastern region, Dewan Housing Finance Corporation will start joint financing with state-owned United Bank of India, that has large presence in the region.

"We have signed an agreement early this year (for this purpose). A formal announcement will be made soon as the joint financing of home loan starts," DHFL Vice-Chairman and Managing Director Kapil Wadhawan said.

Tying up with UBI would help DHFL to get an easy and upstart access to the country' Eastern region, where the housing finance firm has limited presence.

DHFL has 85 branches and 77 service centres, located mostly in the West and South. The housing finance company tied-up with Punjab and Sind Bank last year enabling itself to market its products in the Northern part of the country.

UBI has 1,450 branches, which are mostly located in the Eastern part of the country.

DHFL, which disbursed Rs 2,240.54 crore loan in 2008-09, recording 27.19 per cent growth over the previous fiscal, focuses on the lower and middle income segment since its establishment in 1984. The tie-up with UBI will thus help the housing financing company to reach out to its targeted audience, where the ticket size of loan is below Rs 10 lakh.

"We will start financing home loans jointly from 45 UBI branches initially on a pilot basis. Gradually, this will be extended to the other branches of the bank," Wadhwan said.

DHFL, Wadhwan said, would open 15 additional branches in the current fiscal in West, South and North.

"A good number of them will be extension of the existing service centres," he said.

DHFL has representative offices in London and Dubai. It has a tie-up with UAE Exchange Centre to promote and sell housing finance products through its network of 46 branches across the UAE.