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| Corp Bank launches loan syndication; non-life ins foray soon |
| Press Trust of India / Mumbai Nov 05, 2009, 21:05 IST |
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Eyeing to grow big in the domestic banking space, state-run Corporation Bank today launched its loan syndication business and plans to foray into the general insurance space in the next six months.
"We have launched the loan syndication business and have also taken up a proposal for a Rs 500 crore loan. The bank expects to increase its fee-income from the segment," Corporation Bank Chairman and Managing Director J M Garg said.
Loan syndication is pooling of advances by a group of lenders to mitigate risks.
For its general insurance foray, the bank plans to set up a separate subsidiary by forming a joint venture partnership and has appointed a consultancy to scout for a suitable partner, he said.
"We are thinking of setting up a subsidiary for the non-life insurance business. We have appointed a consultancy and the process is expected to take around six months time," Garg said.
Moving ahead, the bank would focus more on increasing its non-interest income and current, savings account growth, Garg said. The lender expects its CASA to grow to 30 per cent in the current fiscal.
It has also targeted loan growth of 22 per cent in FY10, while the deposit-base is expected to grow by 23 per cent during the period, he said.
The net interest margin of the bank, which stands at 2.3 per cent at present, is expected to grow to 2.4-2.5 per cent in the second half of the financial year, Garg said.
Total business is expected to grow to Rs 1,50,000 crore by the year-end from Rs 1,33,456 crore, Garg said.
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