MANILA - Union Bank of the Philippines said Tuesday it is set to acquire the 11-branch First-Agro Industrial Rural Bank (FairBank) after getting approval from the Monetary Board.

The bank told the stock exchange that its wholly-owned subsidiaries Union Properties Inc. and City Savings Bank Inc. will proceed with the joint acquisition of a majority stake in FairBank.

The acquisition marks the financial conglomerate's foray into rural and microfinance banking, it added.

"We are thrilled about this acquisition because it serves as a first step in serving our unbanked countrymen,” said Eugene Acevedo, CitySavings chairman and Unionbank senior executive vice president.

CitySavings is the thrift banking arm of Unionbank while Union Properties Inc. is engaged in managing the buildings and other real properties.

Unionbank shares were unchanged at P74.50 on Tuesday.