New Delhi: In a bid to establish a toehold in the overseas market, the Oriental Bank of Commerce is planning to set up a representative office in the UAE in the next six months.
“We already have got RBI approval and are seeking regulatory permission from the UAE authorities for opening an office in Dubai,” said Allen C A Pereira , executive director, Oriental Bank of Commerce.
With this, the bank would get its first overseas presence, he said, adding it is expected to come up in the next six months.
On insurance venture with Canara Bank and HSBC Group of the UK, Pereira said, “We have applied for R1 with IRDA. Once it is through, we will apply for the R2 clearance.”
The insurance company is expected to start its operations by rolling out its policy in June, subject regulatory approval, he said.
The venture will have an initial paid-up capital of Rs200 crore, besides HSBC Insurance (Asia-Pacific) will pay Rs125 crore premium to take 26% stake in the venture.
While the majority stake holder Canara Bank, with 51 per cent share, will invest Rs102 crore, OBC will contribute Rs46 crore and HSBC will invest a total of Rs170 crore.
The new life insurance entity will have exclusive access to customer bases of both the state-owned banks and HSBC in India. Canara Bank and OBC have over 40 million customers and a nationwide network of 3,600 branches.
However, to start with the joint venture will sell products from selected branches, Pereira said, adding partners are identifying and working out the strategy for the launch.