Union Bank of India plans to enter wealth management business

The lender to begin scouting for a partner to offer wealth management products and services after the next 5-6 months.

Union Bank of India is mulling to venture into the wealth management business in partnership with a foreign player, after receiving regulatory nod to enter into the mutual fund arena.

The bank's chairman and managing director M V Nair said once the asset management business is in place, they will start the process of looking for the internationally reputed player for their proposed wealth management business.

"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," Nair said.

Recently, the bank received the approval from the Securities Exchange Board of India to launch its mutual fund business.

In November 2008, the state owned Union Bank of India had tied up with the Belgian financial firm KBC Asset Management to enter the mutual fund business.

Union Bank holds 51% stake in the Joint venture, while the Belgian firm holds the remaining 49% stake.

View the full story in Banking Business Review.