CorpBank credit card foray by Dec

Corporation Bank will foray into credit card business shortly. Speaking on the sidelines of the Banking Conclave organised by FICCI-eastern regional council, B Sambamurthy, chairman and managing director, Corporation Bank, said the board had approved the bank's foray into the credit card business.

"We are likely foray into credit card business by this December," Sambamurthy confirmed. Meanwhile, the bank is in the final stages of taking management control of an exchange company in Oman.

"Corporation Bank will take the management control of Oman-based exchange company. We are in the process of getting RBI's approval for the same. Our main target is to capture the remittance business from the strong NRI segment present in the area," he explained.

The bank will also take control of another exchange company in Qatar, Sambamurthy said. The bank is in the process of setting up its first overseas representative office in Dubai, which would be later converted into a branch, he said. Meanwhile, the bank has firmed up total business target of Rs 1,00,000 crore by 2009.

"We are eyeing total business of Rs 70,000 crore in 2006-07. Thereafter, we hope to reach Rs 1,00,000 crore by 2009. Our aim is to become one stop financial shop by that time," Sambamurthy said.

The bank was working on a strategy to achieve Rs 1 lakh crore, he said. The focus will be on retail and manufacturing sector among others things.

However, Sambamurthy ruled out any chance of raising any Tier I capital during the current financial year. The current capital adequacy ratio (CAR) is at 13.92 per cent. The bank has firmed up a branch expansion plan.

"We will be expanding our branch network to 1,000 over the next 16 months, from current 835 branches, out of which 100 branches will be established within the current financial year," added Sambamurthy.