Corporation Bank aims to expand footprint in North, West

Corporation Bank aims to expand footprint in North, West
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First Published: Thu, May 01 2008. 04 19 PM IST
Updated: Thu, May 01 2008. 04 19 PM IST
PTI
Mumbai: Corporation Bank plans a robust scaling-up of its branch network and expand its footprint pan-India, with a special focus on the north and west of the country, a top bank official said.
“We are planning to add around 100 branches and 75 ATMs this year. We are strong in the south now and plan to strengthen our presence in the North and Western regions of the country,” Corporation Bank Chairman and Managing Director B Sambamurthy told PTI.
Currently, the Government-owned bank has around 980 branches and around the same number of ATMs across the country.
Around 60% of the new branches, scheduled to be added this year, will be in both these regions, he said, adding the remaining will be in the South and other parts of the country.
The bank currently has 536 branches in the South and only 237 and 164 in the North and West respectively. In the East, the bank has 44 branches.
“Both the West and North hold an immense potential and we want to tap the opportunities available here,” he said.
“The branch expansion is in sync with the bank’s strategy to double its business every two-and-a-half years instead of the present every three years,” he said, adding “our branch expansion programme will help us enhance our business tremendously”.
Corporation Bank is also targeting to bring down its net non-performing assets (NPAs) between the 0.25-0.35% level this fiscal and its gross NPAs to one per cent from the present 1.47%.
The bank’s focus is now on delinquency management. “Our inventory of doubtful assets is very small, at around Rs370 crore, and our focus is on preventing slippages,” Sambamurthy said.
On fund-raising, the bank had no immediate plans to raise capital, the CMD stated. “We do not plan to raise any funds in Q1. We might look at this possibility later in the year,” he said.
Last year, the bank raised Rs 500-crore sub-ordinated debt in its Tier II structure, which has not yet been exhausted.
“Our capital adequacy ratio (CAR) is at 12% and we still have a considerable headroom (Rs3,500 crore) in our Tier II structure. So at least for the next few months, we won’t be raising any capital,” he said.
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First Published: Thu, May 01 2008. 04 19 PM IST