Union Bank, IL
Mumbai, Nov 21 (UNI) The state owned Union Bank of India and IL&FS Ltd today entered into a strategic alliance by signing a Memorandum of Understanding to provide Banking and Custodian-cum-Demat services to Foreign Institutional Investors (FIIs), investing in Indian Capital Market.
Addressing a press conference here, Union Bank's Chairman&Managing Director M V Nair said this alliance seeks to provide a co-ordinated platform for FIIs. With sustained growth in economy and benchmark stock indices reaching record highs, strong interests from FIIs are likely to continue in the coming years too. He pointed out 974 FIIs are registered in the country till date, with as many as 151 FIIs opening up offices in India in the last 10 months.
Under the arrangement, IL&FS will jointly offer Banking and Custodial Services including tax-deductions online instantly to FII clients.
Earlier, Union Bank's Executive Director R S Reddy and IL&FS Managing Director Arun K Saha signed the MoU documents on behalf of their respective organisations.
Mr Nair said IL&FS will play the role of domestic custodian to the FII clients and shall undertake the settlement of the FII trades executed on the bourses and provide electronic safe-keeping and corporate action management of their Investments, while Union Bank will act as Banker to the FIIs and manage the remittance of funds, computation of tax and other related banking activities.
Responding to a query, Mr Nair said ''we have set a target of building about 100 new relationships (customers) from this alliance by March'07.'' Union Bank has a network of 2107 branches, of which 850 branches covering 241 cities in 22 states are under Core Banking Network. IL&FS is one of India's leading infrastructure development and finance companies, promoted by leading Indian and Foreign Banks and Financial Institutions with twin mandates - to develop infrastructure projects under a commercial format and to provide a comprehensive range of financial services.
UNI SN MJ SKB1905