Bank of Maharashtra (Mahabank) has plans to enter the mutual funds business. | |
| The bank's chairman MD Mallya said on Friday that talks are on with three leading mutual funds in the country and the business will be operational soon. He did not disclose the names of these funds. |
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| The move is part of the bank's increasing stress on fee-based services, Mallya said. Mahabank has already been in the distribution of life insurance products for the Life Insurance Corporation of India. It has a tie-up with United India Insurance Company for distribution of non-life insurance. |
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| These initiatives are expected to also support the bank's efforts to expand its retail credit activities. The bank plans to expand its retail credit from 13 per cent of total advances, to 21 per cent by the end of the current financial year. |
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| In absolute terms, this will reflect a retail portfolio size of Rs 2,100 crore. The bank has created an office of general manager for retail credit. |
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| Mallya said the bank has identified 38 centres to open branches in regions and locations, where it has less presence. |
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| He also said that the entire branch network including all rural branches will be computerised by the end of the year. |
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| The bank is on course to implement the core banking solution (CBS) and 100 key branches will be brought in the ambit of CBS by the end of the year 2006-07, Mallya said. He added that the solution will be made partially operational in the month of November this year itself. |
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| Commenting on the current state of operations of the bank Mallya said, the proportion of high cost deposits to the total deposits has gone down, the bank's recovery is showing strong progress and the level of non-performing assets (NPAs) is likely to be less than one per cent by the end of 2006-07.GGCIEL protests show cause notice on garment zone |
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