Union Bank of India’s wholly owned London subsidiary, UBI UK is expected to be operational by March 2013. It has already received Reserve Bank of India’s approval and is waiting for the local regulator’s approval.
At present bank has a representative office in London. Banks usually choose to upgrade their representative offices into full-fledged branches but the regulatory authority in London prefers the subsidiary channel over the branch route, as the capital requirement is higher.
The bank will be investing nearly about $200 million which can be infused in 2-3 phases as and when the business starts growing. Apart from the capital, the bank will also have to induct a local board in the company.
The bank posted a contraction of 66% in its net profit of Rs 197.00 crore for the quarter ended December 31, 2011 as compared to Rs 579.57 crore for the quarter ended December 31, 2010. The bank’s total income has increased by 27.14% to Rs 5966.82 crore for the quarter ended December 31, 2011 as compared to Rs 4693.06 crore for the corresponding quarter of the previous fiscal.
