Hatton National Bank (HNB) has entered into a Memorandum of Understanding with City Union Bank of India (CUB) with the intention of setting up a Joint Venture Investment Banking operation in India. Mr Rajendra Theagarajah, Managing Director of HNB and Mr S Balasubramanian, Chairman of CUB signed the MOU in Kumbakonam. The proposed Joint Venture Investment Banking entity will focus on serving the Indian market to deliver capital raising and advisory services to the booming market. Hatton National Bank, rated (lkr) AA- by Fitch Ratings Lanka is the premier private sector commercial bank in Sri Lanka with a history of more than 120 years. HNB has a proven track record in executing medium to large deal ticket transactions within Sri Lanka and cross border. City Union Bank is one of the oldest private sector banks in India, existing for more than 103 years. It is known for its friendly and professional services, having customers dealing with the Bank for generations.  It is a highly respected bank with a healthy portfolio of mid-sized Corporates and SMEs.

Both the partners firmly believe that the Investment Banking arena in India for the growing mid-sized Corporate segment is under serviced and there is potential for a focused Investment Banker. The proposed joint venture will be well-equipped to capture the opportunities arising from the growing Investment Banking needs of its identified market as it would tap the proven expertise and resources of both its parents.

Subject to regulatory approval, the new Joint Venture is expected to be incorporated during the course of the year. HNB and City Union Bank will apply to the respective regulators including Central Bank of Sri Lanka, Reserve Bank of India, SEBI and others as required to invest in the proposed Joint Venture.

The proposed Joint Venture with City Union Bank will complement the Joint Venture Investment Banking initiative undertaken by HNB with DFCC Bank in Sri Lanka.