Oil firms mull over future of GTB ATMs at retail pumps

The moratorium on Global Trust Bank (GTB) has put state-run oil marketing companies in a spot of bother as a number of their outlets have GTB off-site automated teller machines (ATMs). Companies such as Hindustan Petroleum Corporation Ltd run outlets with ATMs installed by GTB.

The oil companies are internally discussing the issue whether their outlets should retain the ATMs as GTB's image has got a drubbing following the Reserve Bank of India (RBI) moratorium on the bank. The ATMs would now of course be run by Oriental Bank of Commerce (OBC) as it has taken over GTB.

"We have put up number of additional facilities in select outlets which are like brand shop for our company. The present image of GTB will not fit into that," HPCL sources said.

However, OBC has ended the uncertainty over GTB. As a result, HPCL has decided not to take action immediately.

"We are discussing the matter internally. OBC is a good bank and if GTB off-site ATMs are converted to OBC, it may not be an issue," the official added.

HPCL runs convenience stores called 'Speedmarts' at select outlets offering household items, groceries, refreshments and added services such as bank ATMs.

About 200 retail outlets have ATMs, from banks like ICICI Bank, IDBI Bank, Corporation Bank, Bank of India, HSBC, IndusInd Bank, Bank of Punjab and GTB.

The outlets are part of HPCL's brand building strategy. Other oil companies such as Indian Oil Corporation (IOC) and Bharat Petro have similar retail outlets to compete against new oil retailers like Reliance, Essar and Shell.

The oil companies have been seeking to develop their brand through retail outlets and tie-ups with strong brands. "Any weak link in the chain may spoil the strategy," said an expert.