Corp Bank In Atm-Sharing Negotiations

Corporation Bank is in talks with smaller public sector banks to share its automated teller machine (ATM) network.

According to Corporation Bank's chairman and managing director Cherian Varghese, "We are talking to a few small public sector banks for sharing our ATM network. These banks need not invest in technology."

The advantage of sharing information technology resources lies in the fact that while small banks need not make capital investments, Corporation Bank will get a fee for allowing to use its ATM infrastructure.

The bank has 150 ATMs across the country and plans to increase this up to 250 by the first half of the year.

 

BNP Paribas had tied up with UTI Bank to help its customers access the latter's ATM network. Banks have also come together to share the ATM network under the Indian Banks' Association's Swadhan network.

"In the Swadhan network all the ATMs are not on-line. As against this, all our ATMs are on-line," he added.

Meanwhile, the bank's board is also likely to announce a voluntary retirement scheme (VRS) soon. Corporation Bank was the only public sector bank which had not announced a VRS.

The bank had appointed a committee of general managers to look at the scheme as the union had threatened to go on strike.

According to sources, the committee had submitted its recommendation to the board and had identified around 300 employees for VRS out of the total employee strength of 10,250 in the bank. Once the decision is finalised by the board, it will approach the finance ministry with its proposal.

The bank's board has also created two new posts at the top management grade -- general manager (marketing) and general manager (recovery and priority) -- as part of internal restructuring. Also the credit proposals of the major branches will be sent directly to the head office.

"Around 75 per cent of the bank's advances take place through 50 branches. The new structure will cut down the time taken by these branches. We are also looking at increasing our focus on priority sector and therefore concentrating on the semi-urban and rural areas," said Varghese.

The bank is also looking at the securitisation and reconstruction of financial assets and enforcement of securities interest ordinance 2002 to enforce its rights on some of the non-performing assets.

"We are trying to find some large accounts where the liabilities are in crores. We will pick up a few accounts out of this where we think that the chances of recovery are higher. The operational guidelines have not yet been received and care will also have to be taken that no excesses are be committed. We will also look at compromise settlements," Varghese said.