Mumbai, Aug 01: Union Bank of India on Thursday inaugurated its first offshore banking unit (OBU) and expects to extend credit of atleast $50 million during the first year of operations. "The bank, which also set up an overseas branch in SEEPZ, introduced a new gold loan scheme for the benefit of jewellery manufacturing and export units located in the special economic zone (SEZ)", Union Bank chairman and managing director V Leeladhar told newspersons on Thursday.
The OBU would be able to offer foreign currency loans to units in SEZ and SEZ developers, financing units in domestic tariff area to the extent they are eligible to borrow abroad as per FEMA and acceptance of interbank deposits from Indian banks towards investment of surplus FCNR(B) deposits, he said. Bureau Report