Gets RBI nod for setting up AMC
Plans to have an investment subsidiaryOpens third priority banking branch
KOLKATA: UTI Bank will open by March a branch each in Hong Kong and Dubai. It has a branch now in Singapore and a representative office in Shanghai, Executive Director, Corporate Strategy, R. Ashok Kumar, said. The bank had received Reserve Bank of India (RBI) nod for setting up an asset management outfit.
Mr. Kumar, who was here to open the bank's third priority banking branch (its first full-fledged such branch) in the country, said that similar personalised branches for customers with a savings deposit of Rs. 1 lakh and above and fixed deposit of Rs. 5 lakh and above would be opened in Hyderabad and Delhi followed by Bangalore, Ahmedabad and Chennai.
The first two such ventures were in Pune and Mumbai, he said.
He said with the receipt of the licence to open a branch in Dubai, the bank would now have presence in three major ports and markets in this region.
The bank executives were unwilling to elaborate on the proposed asset management company (AMC), but it was learnt that this venture would focus on the infrastructure sector and was set to be launched in the first quarter of 2007-08. An investment subsidiary was also being planned by the bank.
On the priority banking branch initiative, President, Retail Banking, Hemant Kaul, said that while this area was dominated by multinational banks which offered this facility for high net worth individuals (HNI) with deposits above Rs. 1 crore, UTI's initiative marked "a democratisation of wealth, since individuals with a savings and term deposit of above Rs. 5 lakh could open an account here and get a host of facilities, including an exclusive relationship manager and a wealth manager who would help plan investments".
Mr. Kumar said UTI Bank was enjoying good growth in retail banking and its ATM penetration (200) in Kolkata was the highest among all banks.
It had 2,200 ATMs all over India and had a strong presence in West Bengal. It also had a branch in every North-eastern State.