New Delhi, April 29 -- Union Bank of India is looking to launch a pension fund business this 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.

"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 PFRDA (Pension Fund Regulatory and Development Authority of India) for the pension fund, but they have plans to do that soon," said the first person mentioned above. "Currently, it looks like this should be launched in FY27, and the bank is working on that."

Union Bank operates a joint venture with Dai-ichi Life...