IndusInd ties up with UNB for banking services

Kochi, Apr 21 (UNI) IndusInd Bank (IBL) has notched up an alliance with the Abu Dhabi based Union National Bank (UNB) to provide a wide-range of banking services on a reciprocal basis.

Managing Director of IBL Bhaskar Ghose said the bank would offer services like deposit accounts, remittance, loans, trade finance and corporate finance through branches of the UNB in the Middle East for non-resident Indians there.

The UNB, in turn, would have access to local businesses of NRIs and also be able explore the Indian market without having to invest in branches and subsidiaries, he said.

The IBL, for its activities abroad, was looking at such tie-ups with local or regional branches instead of applying for branch licenses, Mr Ghose said, adding that more such moves were proposed for the Middle East, the US, UK and South East Asia where there was a large concentration of Indian expatriates.

''We expect to capitalise on our ties with our international stakeholders through exclusive alliances with foreign banks, therby generating local business for our partners and India-bound business for ourselves,'' he said.

The private sector bank had also increased its NRE deposit rate for a period of one to two years from 6.04 to 6.29 per cent after the announcement of the RBI's credit policy for 2006-07.

The bank, which took over Ashok Leyland Finance in June 2004, has long-term plans for more acquisition but was looking more at non-banking finance companies, particularly those active in vehicle financing, which formed a large part of the IBL's portfolio, Mr Ghose said.

Kerala, which had a very large workforce abroad, was being seen as a market with huge potential, he said, adding there were plans to add to the 12 existing branches in the state.

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