Aiming at about Rs 1,60,000 crore (Rs 1,600 billion) business this fiscal, Canara Bank will soon upgrade its Hong Kong subsidiary into a branch and open representative offices in China and Dubai as part of efforts to broaden presence in international markets.

"The upgradation of Hong Kong office into branch level is expected within the next 2-3 months," Canara Bank chairman R V Shastri told PTI in New Delhi.

At present, Canara Bank, the third largest in asset size, has a subsidiary Indo Hong Kong International Finance Company Ltd in that country, which is mainly engaged in trade finance.

With Hong Kong subsidiary becoming a branch, Canara Bank would have two overseas branches, the other being in London. It already has a joint venture with the State Bank of India in Moscow.

The bank officials said Canara Bank would also open a representative office in China within the next 5-6 months in view of the improving trade relations between the two countries.

Considering the vast Indian expatriate population in the Gulf, the bank would also open a representative office in Dubai for which it had already applied to the Reserve Bank of India.

At present, Canara Bank has an agreement with Al Razouki International Exchange Company, Leela Megh Exchange Company and Thomas Cook Al Rostamani Exchange Company in Dubai for drawing demand drafts.

Canara Bank also has similar arrangements with other 17 exchange houses for drawing DDs from Gulf countries on its select branches throughout India.

About the road ahead for this fiscal, Shastri said the bank expected a 19-20 per cent growth in business, which stood at Rs 1,33,900 crore (Rs 1,339 billion) in the previous fiscal.

He said growth potential was in services sector, retail lending, credit to agriculture, small and medium enterprises, and corporate lending.

The bank chairman said he foresaw higher corporate lending due to the investment demand and increasing capacity utilisation.

The focus of the bank, he said, was on improving its technological platform and the sharing of ATMs with five other banks would start soon.