Union Bank Plans Mutual Fund Sortie

Union Bank of India is looking to enter the mutual fund business and is likely to announce a partner by the end of this fiscal. The partner is likely to be a foreign partner, but the shareholding pattern is yet to be finalised, said Mr M.V. Nair, Chairman and Managing Director. Details of the bank's joint venture for life insurance with Bank of India and Dai Ichi Mutual Life Insurance would also be announced in less than a month, he added. About the need to raise further capital, Mr Nair said the bank has headroom to raise Rs 400 crore of Tier-I capital through perpetual debt, but has not decided if it would do so this fiscal. The bank will take a decision depending on the interest rate environment.