Corporation Bank has plans to acquire a bank in north India. "We are not strong in the north even though we get substantial business from the north and the west," the bank's chairman and managing director, K Cherian Verghese, said.
Verghese said the bank is well-placed to acquire another bank because of its sound financials. He said the northern bank need not have a strong network of branches as once the acquisition takes place, it could open more branches.
"What is important is integration with the way we do banking," Verghese said. He said the bank in which Life Insurance Corporation holds 27 per cent stake, would be willing to acquire either a private or public sector bank.
Nearly 60 per cent of 663 branches of Corporation Bank are based in south India. Verghese said Corporation Bank's board has cleared a voluntary retirement scheme which would be confined only to its officers.
"We have identified 160 officers out a total of 10,300 employees for VRS," he said. He said the board had cleared the scheme which has now been sent to the government for formal clearance.
He said the outgo for the scheme would be around Rs 15 crore. Verghese said officers who are over 50 years would be offered VRS as this would lower the age profile of the bank and would help induction of fresh talent.
"We don't want to offer VRS to everybody because the bank is growing rapidly and we need enough manpower for this," Verghese said. The bank has a total of 10,300 employees.
Verghese said the Corporation Bank plans to tie up with an international bank for its credit card operations. He said the existing credit card operations has not taken of as it was planned.
"We are in discussions with quite a few international banks for a tie up," he said. Verghese said the bank will soon launch a debit card. The bank plans to add 216 new automated teller machines during the current year to take the total to 500 during 2002-03.
Verghese said the bank is giving technological thrust to its activities. For example, the bank's account holders can now transfer money to any other bank through the internet without even writing a cheque.
He said the bank has decided to give a major push to its retail thrust and plans to double its housing loan disbursement to around Rs 1,250 crore during 2002-03.
"I am sure increase in housing sector activity will touch every economic activity in the country and in turn help its growth," Verghese said.
He said the bank has targeted to add 10 lakh more deposit accounts during 2002-03. Currently, there are 45 lakh account holders.
For 2001-02, Corporation Bank's profits grew 46.26 per cent to Rs 308 crore while its total business grew 18.57 per cent to Rs 29,911.68 crore. The net NPA ratio of the bank was 2.31 per cent of the net advances as on March 31, 2002 compared with 1.98 per cent as on March 31, 2001.
