Canara Bank on expansion spree

Bangalore-based Canara Bank is expanding its reach in the western and northern regions of the country. It will open most of the proposed 106 new branches in the two regions over a year.

The bank also plans to open 20 overseas branches or representative offices in North Amercia and South East Asia.

The bank has over 2,540 branches, largely concentrated in the south. It has received licences from the Reserve Bank of India (RBI) to open new branches a few days ago, along with permission to set up 683 offsite ATMs. The bank currently has 810 ATMs.

"The thrust will be on expanding our branch network in the financially active western region," chairman and managing director M B N Rao told reporters after launching multicap equity scheme of Canbank Mutual Fund today.

The bank has a branch in London, a subsidiary in Hong Kong (Indo Hong Kong International Finance), a joint venture with State Bank of India (SBI) in Moscow (Commercial Bank of India) and a representative office in Shanghan.

Gilt Securities Trading Corporation, Canara Bank's primary dealership subsidiary, is likely to be converted into a stock broking entity. The primary dealer business will be merged with the bank.

Soon after getting regulatory nod, GSTC plans to acquire membership of the BSE and the NSE.

The bank is also finalising a joint venture partner for Canbank Investment Management Services, its asset management subsidiary and the proposed life insurance venture.

It expects to firm-up partners for both the ventures by March 2007.