UB's jt venture with KBC to be operational in 5 months

Kolkata, Jul 15(UNI) State-run Union Bank's joint venture in asset management with KBC Asset Management NV of Belgium is expected to be operational in the next five months.

Union Bank's Chairman and Managing Director M V Nair told reporters today that the asset management venture would have an initial capital of Rs 10 crore.

The bank recently tied up with the Belgian asset manager on a 51:49 basis.

Speaking on the sidelines of the Banking Conclave, Mr Nair also said Union bank was looking at a loan growth of 22 per cent and a deposit growth of 23 per cent in this fiscal.

"At current levels of demand, we expect loan growth to continue as per target," he said.

In reply to a question, the CMD said the Union Bank had headroom to raise Rs 25 billion this fiscal, which would be done through issuing perpetual and tier-II bonds.

The bank would now concentrate on sales of insurance, mutual funds, advisory services and transaction banking to get that revenue, he said.

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