State-run Corporation Bank has ruled out plans to float an initial public offering in the near future. "We have no immediate plans of going public as we do not have any urgent need of capital. We are keeping our powder dry for the moment, but when an opportunity presents itself we will exercise our options," K Cherian Varghese, CMD, said.
The government has over 57 per cent stake in the bank, Life Insurance Corporation of India (LIC) holds 27 per cent and the general public holds a mere 4.94 per cent.
Meanwhile, the bank has opened its first ever full fledged branch in premises owned by the LIC here on Friday, thus cementing ties between the two government entities and offering joint services even before bancassurance comes into being.
Varghese said the bank had identified 100 locations in LIC's premises where it plans to set up automated teller machines (ATMs), extension counters or full fledged branches. The bank has already opened eight ATMs and seven extension counters in premises owned by the LIC which holds 27 per cent stake in the Mangalore-based bank.
"It makes business sense for us as we come more closer to a completely new set of customers including policy holders, agents and the staff of LIC," Varghese said. The branch was inaugurated by Sunil Behari Mathur, Chairman of LIC.
Varghese said the bank had been working to synergise strengths of both the organisations so as to deliver the best to the bank's customers and also policy holders of the LIC. "The bank's customers can now pay their LIC premium through the Internet and those having accounts in computerised branches can also avail of CorpJeevan Raksha, a policy uniquely designed by the LIC for Corporation Bank's customers," he said.
The policy offers an insurance cover, on an optional basis, of up to Rs one lakh (Rs two lakh in case of accidents) on payment of a premium of Rs 325 per annum for the age group 18 to 44 years and Rs 575 per annum for the age group 45 to 55 years.
Varghese said the bank had also taken up the sale of LIC Mutual Fund products through its branch network and was awaiting clearance of the Insurance Regulatory and Development Authority for sale of bancassurance products. "Suitable persons have already been trained and we have the infrastructure in place," he said.
Mathur said LIC had also been approached by other banks for launching CorpJeevan Raksha for their respective account holders. "We are exploring the possibility and may strike a deal," he said.
Mathur however, ruled out the possibility of LIC having any tie-ups with these banks for selling insurance products. "We are firm in not entering the banking business and also not tying up with any new bank for selling insurance products," he said. LIC also has a 9 per cent stake in Oriental Bank of Commerce.
