Money & Banking

South Indian Bank gets RBI approval to start non-financial subsidiary

Our Bureau Kochi | Updated on August 11, 2020

The subsidiary will help SIB streamline its operations, achieve gains in efficiency & cost fronts, facilitate major expansion retail segment business

South Indian Bank has received in-principle approval from the Reserve Bank of India to set up a wholly-owned non-financial subsidiary. The subsidiary would commence operations once the bank completes the related formalities and after obtaining final approval from the regulators.

“The subsidiary would enable us to streamline and optimise various operations so as to improve the overall productivity and efficiency of the institution” said VG Mathew, Managing Director and CEO of SIB.

The subsidiary is a step forward in consolidating SIB’s position as a retail banking power house. The bank has already centralised all its operations, both on the liability and asset sides. With the setting up of the subsidiary, the bank will be able to further streamline its operations and achieve significant gains on the efficiency and cost fronts, facilitating major expansion in business in the retail sector.

By centralising various outsourced functions under one umbrella, the bank would be better equipped to expand its operations besides cutting down expenses significantly, he said.

Published on August 11, 2020

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