Syndicate Bank may merge 4 RRBs

Syndicate Bank may merge four of its regional rural banks (RRBs) in Karnataka.

The public sector bank has sponsored 10 RRBs in various states like Andhra Pradesh and Karnataka, which have a network of 1,163 branches and made a combined profit of Rs 200 crore last year.

Besides, the bank will also extend core banking solution to another 250-odd branches from the present 245 branches, which are networked into the solution, by the end of this financial year.

Syndicate Bank that is activating the equity desk is also looking at 50 per cent reduction in treasury profits from Rs 200 crore last year.

Addressing a press conference held in connection with its public issue, R Chandrasekar, general manager, Syndicate Bank, said, "We are contemplating merging four RRBs in Karnataka. However, this is still in the concept stage and we will not be able to disclose further details on whether it will be with Syndicate Bank or into a separate entity."

By the end of this year, the bank will be spending Rs 170 crore on technology-related expenses for core banking solution. "By 2005-06, 500 banks will be under the core banking solution network," he added.

The bank has a network of 1,798 branches (around 306 in Andhra Pradesh) and 216 extension counters besides an international branch in London.

The bank has also applied to the RBI for its plans of setting up representative branches in Dubai and South Africa.