Union Bank Aims To Extend $50 M Loans From Obu

Union Bank of India expects to extend foreign currency loans aggregating $50 million from its offshore banking unit (OBU) in the first year of its operations.

The bank today inaugurated an OBU as well as an overseas branch at the SEEPZ special economic zone (SEZ) in Mumbai.

The overseas branch of the bank has firmed up plans to launch a gold loan scheme for manufacturer-exporters.

The OBU, which is designated as an authorised dealer under the Foreign Exchange Management Act (Fema), will handle all credit requirements of exporters, while the overseas branch, as an authorised dealer, will take care of all foreign exchange transactions.