Mumbai, Mar 23 (UNI) Public sector UCO Bank will foray into the derivatives business to augment its fee-based income and to hedge the risk.
However, the Bank is yet to take a decision on selecting the consultant, a bank official said.
But market sources said UCO Bank has already finalised a consultant, who has initiated discussions with the state-owned bank to prepare the roadmap for its proposed venture.
The consultant will provide the final blueprint to the bank in three months' time, the sources added.
UCO Bank had floated a tender a few months ago for the appointment of a consultant for venturing into the derivatives market.
In addition to increasing their fee-based income, public sector banks in the country find derivatives and appropriate route to hedge the investment portfolio for minimising the risk factor and market volatility.
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