The Hindu Business Line : Corpn Bank to centralise farm loan processing

Corporation Bank is planning to bring in a big process change with regard to processing of agriculture loans. The bank will soon introduce centralised processing of agriculture loans.

Speaking to presspersons on the sidelines of a function to launch the new tax-saving term deposit scheme, Mr B. Sambamurthy, Chairman and Managing Director, said the bank would introduce the centralised processing of agriculture loans in a month. It has got licence for this from the Reserve Bank of India.

To begin with, the system will be introduced in Hassan zone of the bank in Karnataka. The bank has 33 rural branches in this zone. Under this system, the entire back office process will be centralised at a designated place.

" Medium term goals

Stating that the bank is chalking out medium term goals for development, he said a strong capital base, low intermediation cost and a strong technology backbone are the three major strengths and differentiating features of the bank. Corporation Bank wants to get into investment banking and insurance products at broader range. Asked about the retail aspect of investment banking, he said the bank would get into depositary participant business soon.

Mr Sambamurthy said the bank has identified 160 branches for financial inclusion. A survey is conducted in around 70 branches, and each individual household is surveyed in these branches. Asked if the bank will hike lending rates, he said the board, which will meet during the month-end, would discuss this. "Options are open. Let me assure you that no productive sector will be denied credit facility," he added.

The tax-saving term deposit scheme - `Corp Tax Saver' gives the benefits of high returns and tax exemption under Section 80 C of Income Tax Act. The bank wants to mobilise one lakh accounts under Corp Tax Saver scheme during the current financial year.

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