Staff Reporter

Debt recovery procedure has been extended

MADURAI: The Union Budget 2007 was neutral and favourable to the banking sector, said M.S. Sundara Rajan, Executive Director, Indian Bank. "Your (customers) position has not weakened. Rather, it has improved," he said.

Mr. Sundara Rajan was addressing a press meet here on Friday after inaugurating a new branch of Indbank Merchant Banking Services (subsidiary of Indian Bank).

Elaborating on the aspects pertaining to the banking sector, he said that the provision of debt recovery using "Surfacia," a debt recovery procedure, had been extended to Regional Rural Banks (RRB). The provision of opening Foreign Currency Non-Resident and Non-Resident External accounts had also been extended to RRBs, he said.

With the inauguration of the branch here, the number of Indbank branches in the country went up to eight and 10 more would be opened, said Mr. Sundara Rajan who is also the Executive Director of Indbank.

"The Madurai branch has 120 accounts at present with the target being 500 accounts before March 31." At present, only two per cent of the country's population used the capital market, he said.

The Indbank Merchant Banking Services also offered investment counselling for its customers, for which marketing professionals had been recruited.

"The Initial Public Offers were thought to be profitable sometime ago. But, in recent times, some of them had turned out to be unprofitable. So the choice had to be made by the customer only," he said reacting to a question on how strong was the counselling service.