The Hindu Business Line : Room for east-based bank in the alliance

The three allying banks — Corporation Bank, Indian Bank and Oriental Bank of Commerce — have said that there is room for one more partner in the `strategic business alliance'. They have said that they are not averse to an east-based bank joining the alliance.

Sources in the three banks have told Business Line that a bank which has a strong presence in eastern India would give the alliance a "national footprint", but said that a fourth bank getting on board would not happen in a hurry.

Nevertheless, the names of three banks have been doing the rounds — United Bank of India, Allahabad Bank and UCO Bank. Sources said that UCO Bank is not a likely candidate because the imminent superannuation of the Chairman and Managing Director would impede negotiations.

While insisting that the issue is premature, sources said that either United Bank of India or Allahabad Bank might be the fourth partner.

When contacted by Business Line, the chiefs of both the banks said that while they had not received any overtures, they were not averse to any such proposal.

"I will not say `we are not interested', but we will have to first examine the merits of the case," Mr A. C. Mahajan, Chairman and Managing Director, Allahabad Bank, said today, when asked if the bank would agree to joining the alliance, at least in-principle.

Mr P. K. Gupta, Chairman and Managing Director, United Bank of India, took a similar line. "I have not received any proposal, how can I say whether we are interested or not," he said.

Another alliance

Meanwhile, Vijaya Bank is said to be interested in forging another alliance. Senior officials of the bank confirmed to Business Line the existence of such a thought, but said they had yet to work the idea. They said they might look at "banks of a comparable size" with complementary geographical presence.

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Room for east-based bank in the alliance