Allbank scouts for insurance jv partner

Allahabad Bank has charted out several initiatives for its growth strategy, which includes a new HR policy, organisational restructuring and entering new areas of business.

The bank was looking for joint venture (JV) partners for its proposed insurance business, bank Chairman and MD O N Singh said at the sidelines of its third AGM.

"Consultant Ernst & Young are advising on business strategy to the bank. Entering insurance sector is one of the options and we are looking for joint venture partners for the same," Singh said.

The bank was also planning to use its subsidiary Allbank Finance to foray into insurance business and other fee-based activities like merchant banking, stock broking and portfolio advising, Singh said.

The bank was looking at organisational restructuring like merging its six regional rural banks (RRBs) into two banks.

The bank has also decided to either close or merge its seven urban branches this fiscal. At the same time, it was looking at opening new branches in overseas markets, Singh said.

In order to increase employee productivity, Singh said, the bank would frame a new human resource policy and had shorlisted IIM-Calcutta, IIM-Ahmedabad and XLRI-Jamshedpur to draw the roadmap.

The bank would induct six new directors from among its shareholders. An EGM had been convenyed on june 29 to seek shareholder consent.

Renovation and automation remain a priority for the bank. The bank would invest about Rs 100 crore to renovate about 100 branches every year.

It would connect 400 branches under central banking system, open helpdesks and call centres to streamline operations.