The Bangalore-headquartered Canara Bank has firmed up plans to open a representative office in Shanghai. It is also planning a similar office in Dubai as part of its overseas expansion drive.

The bank has zeroed in on Shanghai in view of its pre-eminence as the business hub of east Asia, while the presence in Dubai will enable it to cater to the banking needs of the large expatriate Indian community.

"We want to increase our footprint overseas. Hence the move to set up representative offices in Shanghai and Dubai," said R V Shastri, chairman and managing director, Canara Bank.

The bank has a branch in London and a wholly owned subsidiary in Hong Kong (the Indo-Hong Kong International Finance).

Advances of the London-branch touched $80.26 million as of March-end 2003, while the total asset base of the Hong Kong-based subsidiary rose by $18 million to $ 47 million in fiscal 2002-03, said Shastri.

Canara Bank has also floated a bank in Russia in a 40: 60 joint venture with the State Bank of India.

While SBI has contributed $12 million to the equity capital of the Moscow-based bank, Canara has chipped in with $8 million.

Shastri pointed out that the bank plans to shortly open an offshore banking unit in Noida.

Meanwhile, Canara Bank is planning to raise Rs 250 crore (Rs 2.5 billion) via a subordinated debt (Tier-II) issue.

The bank has sought the permission of the central government and the Reserve Bank of India to raise the resources.