Spider extends its web

Implications: 1. Corporate India creating more opportunities for business for the Indian financial sector. 2. Investment banking in India is at a nascent stage.

Analysis: Indian corporate sector has been quick to get off the mark with the liberalisation of the Indian economy.Taking a cue from the aggressive growth of the IT sector, other sectors have been trying hard to play catch up. Indian financial sector tried a hodge podge of tie-ups with various overseas companies with various degrees of success. Ultimately the Government is in the process of changing the regulations to let in foreign players. With the likelihood of competition breathing down their necks the Indian banks have to find innovative ways of doing business to keep up with the changing times.

Help has come in the form of aggressive mergers and acquisitions program of the corporate sector. With the Tatas and the Reliances on a buying and acquisition spree, Indian banking is waking up to the opportunities.State Bank of India, Bank of Baroda were quick to explore the opportunities and expand their businesses into insurance and investment banking.Now Union Bank of India a major competitor for Bank of Baroda in western India has followed the lead.

With a huge network of branches spread all over India and rated as an efficient bank with huge resources, Union Bank is well positioned to develop into the investment banking sector and corporate advisory services. But investment banking is not all rosy. It is a risky business. The current global crisis is a case in point.Inexperience and aggression are a deadly mix. A slow and careful build up to the business may create a back bone for future growth.

Union Bank of India is known for its gradual growth and absence of indiscriminate aggression. True to its symbol - spider.