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Mr J. M. Garg

A.J. Vinayak

Mangalore, Nov. 20 Corporation Bank is planning to increase the share of non-interest income to total income significantly, according to Mr J.M. Garg, the new Chairman and Managing Director of the bank.

One of the major initiatives of the bank will be to focus more on non-interest income, Mr Garg told Business Line.

At present, the non-interest income is less than 10 per cent of the total income. “My endeavour will be to take it to 20 per cent of the total income,” he said.

(During the second quarter of the current financial year, the bank earned a non-interest income of Rs 108.82 crore. The total income during the period stood at Rs 1,623.13 crore).

The non-interest income would be boosted through distribution of products such as insurance and mutual funds through branch network. “We want to further scale it up,” he said.

The bank’s dependence on interest income — which will be subjected to fluctuations — can be cushioned by increasing the share of non-interest income. With that the bank will not be always under pressure to earn only by lending. It can earn more by providing other services, he said.

To a query on the business target for the current fiscal, Mr Garg said the bank would like to reach a level of Rs 1.15 lakh crore by the end of the current fiscal. It achieved a business of Rs 1.03 lakh crore by September 2008.

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