Corporation Bank buys forex firm in Oman

Corporation Bank has acquired an Oman-based foreign exchange firm, in order to tap non-resident remittances from west Asian countries.

The Omani exchange company has already signed an agreement according to which it will be managed by the bank for a share in profits, B Sambamurthy, chairman & managing director, Corporation Bank, said on the sidelines of a Corporation Bank event instituting national small and medium enterprise awards.

Sambamurthy, however, declined to name the company. The Reserve Bank of India is expected to give its clearance to this shortly.

A significant percentage of remittances to India from West Asia are dominated by exchange companies rather than banks, which is the underlying reason for acquiring the company.

The bank would consider more acquisitions of exchange companies dealing in remittances to India. The bank has also applied for a representative office in Dubai, Sambamurthy said. 

Talking about the retail initiative undertaken by the bank, he said that 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. The 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 SMEs.