"It is a 50-50 JV and it would help potential entrepreneurs and SMEs to help access funds for capital expansion which they have not reached so far," City Union Bank Ltd Chairman S Balasubramanian told reporters here.
"It is (the joint venture) in the initial stage as we are waiting for regulatory approvals and expected to take at least six months of time," he said, adding they have some investment expertise and its better to have another partner, citing reasons for the tie-up.
On the bank's performance for the financial year 2007-08, Balasubramanian said the bank's total business crossed Rs 11,000 crore in financial year 2008 as compared to Rs 8,029 crore in the previous year.
The bank reported a profit after tax of Rs 101.73 crore for the year ended March 31, up by 41.67 per cent over the previous year.
The total income rose from 454.13 crore in 2007 to 686.25 crore in 2008, up by 51.11 per cent, he said. He said they have set a target of posting Rs 15,000 crore total business this year.
"If we are able to sustain the same growth, we will be reaching Rs 15,000 crore this year," Balasubramanian said and added they would be soon launch a new life insurance product in the next couple of days. The Bank has also planned to launch its VISA ATM cum DEBIT card shortly.
