News ID: 255746
Published: 0300 GMT July 13, 2019

India’s UCO Bank increases its branches to do business with Iran

India’s UCO Bank increases its branches to do business with Iran

India's UCO Bank tripled its branches with the aim of enhancing and boosting trade with Iran.

UCO Bank is making all efforts to ensure that exporters who do business with Iran can approach its designated branches for help.

The bank has increased the number of such designated branches (for doing business with Iran) from 22 to 67. It is now contemplating to set up an apex processing center across its branch network (comprising over 3,000 branches) to help exporters. “This could take another six-seven months,” a top bank official said, Hindu Business Line reported.

On the sidelines of an exporters’ meet organized jointly by the Federation of Indian Export Organizations (FIEO) and UCO Bank, UCO Bank Managing Director Atul Kumar Goel said the bank would need to train its personnel both at the branch and treasury levels on procedural compliance for doing business with Iran.

Discussing the present trends in the global trade, banking-related issues of exporters, and facilitation initiatives taken by the government, Goel said, “the government is giving a thrust to export finance. UCO Bank facilitates and promotes export finance. As many as 14 Iranian banks have opened Indian Rupee Vostro Account with UCO Bank.”

Explaining the significance of Iranian banks opening account with UCO Bank in India, he said: “Whenever we import oil, the money is paid by the oil companies in India and credited to this account. That bank will send this Indian rupee to the bank in Iran and the payment to the exporter will be made in Iranian rial.”

Goel said export opportunities to Iran are huge. Credit is extended at competitive rates and will not be a constraint for exports, he added.

   
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