Uttar Pradesh, India (PressExposure) July 31, 2009 -- UCO Bank, the public sector bank is looking forward to entering the non life insurance business after forming a joint venture.
The chairman and managing director of bank S K Goel said that the memorandum of understanding for the joint venture is expected to be signed in the month of September.
A senior official of the bank came up with the statement saying that a consultant has been appointed by the sub-committee of the board of directors, to find out the potential foreign partner for the joint venture.
He also said that the new venture would be started with four partners where any other non-banking company or a public sector bank can take part besides UCO Bank and the foreign partner.
In the joint venture business, UCO Bank will hold total 36% stake while its foreign partner will stand with the 26% partnership in hands. The rest 38% stake will be held by other 2 domestic partners.
UCO Bank has posted the net profit of Rs.178.85 crore in the first quarter of FY'10 which ended on June 30, 2009, with the total growth of 34%. The total business of the bank has recorded the growth of 26% with total deposits and advances of Rs.1,00,428 crore and Rs.1,68,808 crore respectively, during the quarter.
The domestic business of the bank is affected by the slowdown in its overseas business. Goel, however said that the bank is looking forward to growing its business to Rs.2,02,000 crore by the end of FY'10.