Financial Daily from THE HINDU group of publications
Friday, Aug 15, 2003
Financial Daily from THE HINDU group of publications Friday, Aug 15, 2003 |
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Money & Banking
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Public Sector Banks Marketing - Strategy Allahabad Bank launches new deposit scheme Our Bureau
Mr K.K.Rai, Executive Director, Allahabad Bank, and Mr Bikash Ghosh, General Manager, at a press conference in Chennai on Thursday. — Shaju John
Chennai , Aug. 14 ALLAHABAD Bank has begun to offer its depositors the option of picking a term assurance policy at a cost lower than the market rate. The deposit-insurance scheme, Al-Ayushman Bima Yojana, is offered in association with Life Insurance Corporation (LIC). The scheme is the outcome of the bank's search for value addition said Mr K.K. Rai, Executive Director. Other banks too offer a similar scheme. It would be less expensive than a stand-alone insurance policy because the premium is calculated for a single master-policy given to the bank by LIC. Mr Rai said the bank had set a target of 25,000 accounts opting for the term policy on the first day, and indications have been positive. The policy has been designed with convenience in mind. Bank officials said the premium would be deducted by the bank, and sent to LIC. The scheme has waived medical checks, and only requires a consent letter from its depositors. The deposit-insurance scheme has a limitation in relation to a stand-alone policy in the sense that it offers only a single sum assured (claim that is required to be paid by the insurance company), that is, Rs 1 lakh. Allahabad Bank has identified fee-based income as a thrust area. To augment fee-based income, it has joined hands with two life insurance companies, LIC and ICICI Prudential, and one non-life company, National Insurance Company. In this context, Allahabad Bank has earmarked Rs 50 crore for Information Technology investment during the current year, said Mr Rai. Automation's importance was highlighted through the limitation of the deposit-insurance scheme. Bank officials said that in order to offer customers greater choice, the administrative capacity had to be supported by a more sophisticated computerised network. The Board has decided to invest in a core banking solution (technology for handling operations) by the end of the year, indicated Mr Rai.
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