Saturday, November 18, 2006

>PSU bank trio charts roadmap for onward trip

An alliance of three banks — Indian Bank, Oriental Bank of Commerce and Corporation Bank — has identified as many as 13 areas on which they could work together. The rollout to customers will begin by mid-December.

On Friday, the chiefs of the three state-owned banks signed an MoU. On September 15, the three banks had signed an expression of interest (EoI) to work together without actually merging.

The 13 areas include
  • IT resources,
  • treasury,
  • capital markets,
  • training,
  • procurement of assets,
  • e-payments system,
  • business syndication,
  • bancassurance,
  • market research,
  • cash-management services,
  • interbank payments,
  • cards and overseas banking operations.
“We will start with payments system and it will be followed by credit syndication.

This is a very intelligent move which would save cost for all the 3 banks while greater co-operation would also lead them to take on competition more effectively.

No comments: