Union Bank of India (UBI) is reportedly
considering potential partners for its wealth management business
which it plans to launch in 2012.
The state-run bank already has an insurance
joint venture with Star Union Dia-ichi Life Insurance Co and formed
a mutual fund tie-up with KBC last year.
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UBI is the latest state-owned bank to push
into the wealth management space. In June last year, India’s
largest lender, State Bank of India (SBI), announced plans to start
wealth management services in 2011.
RBI, SEBI revise wealth industry
rules
UBI and SBI’s efforts to launch into wealth
management come at a time when regulators are tightening up
oversight of the Indian wealth industry.
In the wake of the
Citibank wealth fraud, a range of Indian regulators, including
the Reserve Bank of India and the Securities and Exchange Board of
India, could be given more powers to impose penalties on wealth
managers who breach a new set of rules currently being drafted.
