Strategic alliance of Union Bank of India & IL&FS

Union Bank of India and IL & FS LTD, entered into a  Strategic Alliance by signing a Memorandum of Understanding on 21^st November, 2006. This MoU aims to establish a platform for providing Banking and Custodian-cum-Demat services to Foreign Institutional Investors (FIIs), investing in Indian Capital Market.

Union Bank of India is a leading PSU Bank with a network of 2107 branches, of which 850 branches covering 241 cities in 22 states are under Core Banking Network. The present total Business of the Bank is in excess of Rs. 1,40,000 crores. Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India's leading infrastructure development and finance companies, promoted by leading Indian and Foreign Banks and Financial Institutions with twin mandates: to develop infrastructure projects under a commercial format; and to provide a comprehensive range of financial services.

The alliance is envisaged between the two entities, primarily for the purpose of tapping business opportunities generated from investments made by FIIs in Indian Capital Market. With sustained growth in economy and benchmark stock indices reaching record highs, strong interests from FIIs are likely to continue in the coming years too. Under the arrangement, IL & FS will jointly offer Banking and Custodial Services to FII clients. While IL&FS will play the role of  Domestic Custodian to the FII clients and  shall undertake  the settlement of the FII trades executed on the Exchanges and provide  electronic safe-keeping and corporate action management of their Investments, Union Bank will act as Banker to the FIIs and manage the remittance of funds, computation of tax and other related banking activities. 

Sourced From: Pressman India