Corp Bank Sets Up Panel To Check Resource Needs

The Mangalore-headquartered Corporation Bank has formed an internal committee of its general managers to look closely into its resource requirements and organisation structure.

"An internal committee has been formed by the bank to examine issues pertaining to economising resources, including human resources," K Cherian Varghese, chairman and managing director, said.

To a specific question as to whether the bank is examining the possibility of offering VRS to its officer cadre employees, he said: "When the other banks are contracting, our bank is in an expansion mode. In fact, we have recently advertised to recruit 125 officers and 160 clerks."

Varghese referred to the fact that the memorandum of understanding signed by the bank with Life Insurance Corporation (LIC) entails setting up of 100 extension counters and 25 branches at the insurance company's premises across the country over the next one year. The bank, on its own, will be setting up 25 branches and a similar number of extension counters.

 

He pointed out that depending upon the recommendations of the internal committee and stabilisation of the information technology strategy of the bank, it would take up the VRS issue with the government.

The bank has drawn up a Rs 125 crore information technology (IT) plan to keep itself ahead of competitors in the industry, he said. The plan involves operationalising 250 ATMs across the country by March 2002, and also offering anywhere and internet banking facility to the bank's customers.

P K Gupta, executive director, said that accounting and management consulting firm Deloitte Haskins Sells was close to completing the valuation of CorpBank Securities, the primary dealership subsidiary of Corporation Bank, on behalf of the bank, while UTI Securities Exchange Ltd was conducting this exercise on behalf of LIC for the purpose of the latter picking up a stake in the primary dealership firm.

Meanwhile, Corporation Bank has decided to launch a new loan product called "Corp Suvidha." This product, which offers loans upto Rs 50,000 at an interest rate of 11.5 per cent, will enable the salary earners, who will now have to pay tax on perks, to pay taxes.