Union Bank plans pension fund foray in JV with Daiichi

Union Bank of India is looking to launch a pension fund business during the current fiscal year, joining a growing list of lenders seeking to capitalize on regulatory changes that have opened up the National Pension System (NPS) to banks, according to two people aware of the development.

- Apoorva Ajith & Subhana Shaikh

Union Bank's move follows regulatory changes that allow lenders to independently sponsor pension funds under the NPS.

(MINT)

"We are working in a JV (joint venture) mode with Daiichi. But many approvals are yet to be taken. So far, the bank has not applied to the PFRDA (Pension Fund Regulatory and Development Authority of India) for the pension fund, but they have plans to do that soon," said one of the two people. "Currently, it looks like it will be launched in FY27, and the bank is working on that."

Union Bank operates a JV with Dai-ichi Life International Holdings, a subsidiary of Daiichi Life Group, formerly Dai-ichi Life Holdings, a Japanese firm, for its insurance arm Star Union Daiichi Life Insurance (SUD Life) since 2009. Bank of India is also a part of this JV.