Staff Correspondent

It is the first bank to introduce this service for farm loans

  • The service will be launched within the next five weeks initially at Hassan
  • Decision by this month end as increase in lending rates
  • Corporation Bank is training its manpower for investment banking activities

    MANGALORE: Corporation Bank will centralise the processing of agricultural loans, B. Sambamurthy, chairman and managing director, Corporation Bank here on Tuesday, has said.

    He told presspersons that the Reserve Bank of India (RBI) had permitted the bank to introduce the centralised processing system.

    This would be launched within the next five weeks initially in Hassan.

    The entire back office process with regard to agricultural loans would be centralised at a designated place. With this, the processing would become much faster.

    According to Mr. Sambamurthy, Corporation Bank was the first to introduce centralised processing for agriculture loans. It was being started mainly at the village level.

    Asked if the bank was planning to increase the lending rates he said the board members of the bank would meet and take a final decision by this month end.

    According to Mr. Sambamurthy the bank had three major strengths in the form of strong capital, low intermediation cost and strong technology. As for future plans, he said, the bank wanted to get into investment banking, insurance products, and retail banking. It also wanted to get into depository participant services.

    The bank would focus more on corporate social responsibility in accordance with their business goal.

    He said that the bank was training its manpower for investment banking activities.

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