Public sector bank, Union Bank of India, has announced that it has been allowed to set up an offshore banking center in Dubai International Finance Centre (DIFC). The announcement was made by Mr. D. Sarkar, the Chairman & Managing Director of the bank.
The Mumbai based bank plans to open at least 3 offshore banking units in foreign countries next year. Apart from Dubai, the bank also plans to set up a subsidiary in London and one branch each in Sydney and in Antwerp in the next year.
It is reported that having presence in DIFC will enable it to raise funds in foreign currencies and to on-lend to its customers in foreign currencies. Sarkar said, "We are at an advance stage of getting clearances and completing the formalities for London subsidiary and a branch in Sydney."
Currently, Union Bank has overseas presence in countries like Hong Kong, Beijing, Shanghai, London and Sydney.