Corp Bank buys Oman forex firm

To tap the non-resident remittances from West Asian countries, Corporation Bank has acquired an Oman-based foreign exchange firm.

On the sidelines of addressing a press conference on instituting a national small and medium enterprise awards, B Sambamurthy, chairman and managing director, said the exchange company had already signed an agreement by which it would be managed by the bank for a share in profits. However, he declined to name the company.

The Reserve Bank of India is expected to give its clearance shortly.

Sambamurthy said a significant percentage of remittances to India from West Asia was dominated by exchange companies compared with banks, the underlying reason for acquiring the company.

Sambamurthy said the bank would consider more acquisition of exchange companies deal with remittances to India. The bank has also applied for opening a representative office in Dubai.

About the retail initiative undertaken by the bank, he said all documentation on advancing various retail loans such as personal loans, car loans, home loans, among others, would be centralised so that approvals on them could be faster.

Corporation Bank aims to double its total business to touch Rs 1 lakh crore by the end of 2008. The bank, to promote and encourage small and medium enterprises, has instituted awards for small and medium enterprises.

This awards will be given on the basis of economic performance, environmental and ethical practices followed by these enterprises. The bank has framed a comprehensive policy for financing SME.

The banks' exposure to SMEs for the year ending March 31, 2006 was Rs 2,609 crore, which the bank expects will grow by 20 per cent.