Union Bank of India plans to launch a pension fund business in fiscal year 2027 through a joint venture with Japan's Daiichi Life, capitalizing on new regulatory changes.

Union Bank of India plans to launch a pension fund business in fiscal year 2027 through a joint venture with Japan's Daiichi Life, capitalizing on new regulatory changes. The Pension Fund Regulatory and Development Authority approved a framework in December 2025 allowing scheduled commercial banks to independently sponsor National Pension System funds. This eliminates previous requirements for banks to partner with entities holding minimum assets of fifty thousand crore rupees. Union Bank's move reflects broader banking sector interest in the pension space, with Bank of Baroda also pursuing similar plans. The regulatory shift aims to strengthen India's pension ecosystem, boost competition, and enhance subscriber protections through well-capitalized institutions. Union Bank's treasury team expertise is expected to support this expansion into wealth management services.