Union Bank share issue oversubscribed

The Union Bank of Colombo is well geared to achieve its goal of becoming a financial powerhouse with the recent equity infusion of Rs. 2 b, of which, Rs. 1 b was made by the Malaysian giant engaged in leisure and hospitality, Genting Berhad.

The capital was raised by way of a private placement.

This initiative highlights the bank's strong position in the industry and its strengths in attracting high profile foreign investors.

The bank aims to build on the capital infusion in achieving new heights and accelerating growth.

With the new equity infusion, the capital of the bank surpasses well beyond the minimum capital stipulated by the Central Bank of Sri Lanka.

In another significant move, Union Bank appointed Chairman and CEO of Genting Berhad, Tan Sri Lim Kok Thay, President and chief operating officer of Genting Berhad Tan Kong Han as Directors of Union Bank.

President of Genting Hong Kong, Chua Ming Huat was also appointed a Director of Union Bank while, Chief Operating Officer of Genting Hong Kong So King Tak Blondel was appointed as the alternate Director to Chua, demonstrating the commitment and significance attached to Genting's investments in Union Bank.

The move is also seen as further strengthening the Board of Union Bank.

The Union Bank is looking into mergers and acquisitions.

Further, the bank is planning to open more than 10 new branches this year, subject to approval.

As an integral part of the new strategic direction of the bank, a comprehensive technology enhancement plan is being put in place to ensure state-of-the-art systems that will support the bank to innovate and drive its product portfolio whilst delivering a better service to its customers.

Plans are also underway to expand the Bank's product portfolio by offering enhanced banking services including housing loans, factoring, project finance and investment banking facilities.