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Our Bureau

Talks on with Qatar exchange co too

MR B. SAMBAMURTHY

Chennai , June 20

Corporation Bank is all set to takeover the management of an exchange company in Oman. Officials from the bank will run the company and the profits will be shared between the bank and the owners of the company.

Corporation Bank is also negotiating for a similar management takeover of another exchange company in Qatar, the bank's Chairman and Managing Director, Mr B Sambamurthy, said on Tuesday.

Mr Sambamurthy was here in connection with the bank's launch of an award for small and medium enterprises. Later, in an informal chat with newspersons, he said that Corporation Bank would not be affected by the rise in bond yields, because "our duration is very short— less than two years."

Mr Sambamurthy, who took over as the CMD of the bank on April 1, was all praise for the bank, which he said was a public sector bank that bettered private sector efficiency.

He pointed out that the bank's intermediation costs, defined as operating expenses as a percentage of average working funds, was among the least in the industry, at slightly less than 2 per cent. The industry average was between 2.5 per cent and 2.75 per cent.

"The low intermediation cost gives the bank the leeway to price its products competitively," he said.

The bank closed last year with a total business (deposits plus advances) of Rs 56,000 crore. It has set itself a target of Rs 1,00,000 crore in 30 months. It hopes to reach Rs 70,000 crore this year.

Working towards this target, the bank has planned to increase both its ATMs and branches to 1,000 each, from 928 and 835 respectively now.

More Stories on : Mergers & Acquisitions | Public Sector Banks | Financial Services

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