Canara Bank to expand overseas

Canara Bank is expanding its overseas branch network by adding five more branches in various countries in the next few months.

The bank has received an approval from the Reserve Bank of India for opening branches in 21 international locations identified for expansion in the medium-term.

According to Canara Bank chairman and managing director MBN Rao, the bank plans to open branches at Johannesburg, Frankfurt, Muscat, QFC-Qatar and Bahrain this year. Its representative office at Shanghai is being converted into a full-fledged branch shortly.

He told reporters here that the bank had set a target of achieving a global business level of Rs 290,000 crore for 2007-08, with a growth rate of over 20 per cent, comprising Rs 170,000 crore under deposits and Rs 120,000 crore under advances. Advances growth will be significantly driven by agriculture, SMEs, infrastructure and other productive segments, including services sector.

In an effort to improve its visibility and position itself as a strong customer-centric bank, the management of Canara Bank has undertaken a brand-building exercise.

"We have appointed brand design firm, Ray+Keshavan to prepare a strategy for the bank. The entire branding exercise is focused on the bank's overall objective of responding to the changing times, customer preferences and articulating its long-term vision," Rao said.

The bank has also formulated a new marketing strategy to execute strategies and realise its business goals. It has roped in Boston Consulting Group for a comprehensive study on corporate business strategy. Setting up of customer relationship management module and a dedicated call centre are presently underway, he said.

Under financial inclusion, the bank has set a target for mobilising one million no-frill accounts during FY08 and bring balance 11 lead districts of the bank under total financial inclusion by December 2007. Besides, the bank aims to set up one lakh self help groups (SHGs) during the present financial year, including 22,000 SHGs in the urban locations, he added.