Cox & Kings Banking Arm To Commence Operations

The banking arm of Cox & Kings is set to commence operations in the next four to five months.

However, the Reserve Bank of India has threatened to withdraw the licence given to the travel company if it does not begin operations by June 30, 1997.

The private sector bank has completed more than 50 per cent of infrastructure work and will have its registered office at Guwahati.

According to the former Bank of India chief, G Kathuria, he had offered professional assistance for the setting up of the bank.

"Groundwork is at an advanced stage and the core people for the functioning of the bank have been recommended by me," said Kathuria.

It may be recalled that the license issued by the Reserve Bank to Cox & Kings for setting up of private bank expires on June 30, 1997.

Eyebrows were raised in banking circles when the travel company mooted the idea of setting up the bank in the priority sector area, at Guwahati.

Though Kathuria is optimistic that the bank will come through in the next few months, banking industry experts feel otherwise as there are barely two months remaining for the license to expire.

Ruling out taking over executive role in the new private bank's operations, Kathuria indicated that he may take up an advisory role.

"I will take the final decision only after a couple of months," he said.