Union Bank to expand operation in UK, Australia

State-run Union Bank of India, which plans to set up a subsidiary in the United Kingdom and a branch in Australia and Belgium, is expected to get regulatory approval in the next six months.

"We hope to get approval from the respective regulators in the next six months," Union Bank of India Chairman and Managing Director MV Nair told PTI.

The bank has already got nod from the Reserve Bank of India for setting up operation in these countries.

The bank plans to open a branch in Antwerp (Belgium), Sydney (Australia). At the same time a subsidiary in the UK which can cater to the customers in the European region.

Currently, the Mumbai-based bank has representative offices in Sydney (Australia) and London (UK).

Besides, the bank has full-fledged branch in Hong Kong. The branch carries out normal commercial banking operations like acceptance of deposits, trade finance, External Commercial Borrowing (ECBs) and syndicated loans.

As on March 31, 2010, deposits at Hong Kong branch reached a level of $82 million up from $56.05 million on March 31, 2009, registering a growth of 46.30%, while advances grew by 158% to $664 million at the end of 2009-10.

The operating profit of the Hong Kong branch reached $12.92 million as of March 31, 2010, up from $3 million in the previous fiscal, a growth of 330%.