Corporation Bank plans merchant banking licence

Corporation Bank plans merchant banking licence

New Delhi: In a bid to increase its fee based income, Corporation Bank is planning to seek merchant banking licence from the market regulator Securities and Exchange Board of India (SEBI).

“We are planning to apply for merchant banking licence," Corporation Bank chairman and managing director Ramanath Pradeep said.

The bank is looking to activate its primary dealer arm Corp Bank Securities Ltd by adding more features like merchant banking, he said.

Corp Bank Securities, a wholly-owned subsidiary of Corporation Bank, primarily deals in trading of the government securities, bonds and treasury bills.

Besides, Corporation Bank expects a total business of Rs2 lakh crore by the end of current fiscal.

“We hope to cross business mix (total deposit and advances) of Rs2 lakh crore by the end of March 2011," he said.

As per the provisional figure, the business mix of the bank is close to Rs1.66 lakh crore at the end of September 2010, he said.

Talking about the scheme, Pradeep said that Corp CA is specially designed for chartered accountants. Through the scheme, eligible chartered accountants can avail finance for construction of office premises, to finance furniture and fixture etc.

The scheme is specially designed to take care of the needs of fresher CAs with experience below three years, he said.

For office premise, loans up to Rs20 lakh would be sanctioned for CAs whose gross annual income is up to Rs5 lakh, he said, adding that Rs2 lakh would be sanctioned for working capital.