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Syndicate Bank will focus on fee income, retail and SME loans as a strategy to boost its balance sheet. The bank has decided to enter into strategic tie-up with asset management companies to sell their mutual fund schemes. Also it is in talks with life insurance companies for distribution of insurance products.
Disclosing this, bank's CMD M G Sanghvi said, "Distribution of both insurance and mutual funds will help us boost fee income. We are aiming at an annual growth of 30% this fiscal year." The bank's fee income rose 17.5% to Rs 1075.8 crore in fiscal year 2010-11. As of now, the bank does not sell mutual fund schemes to its customers unlike many private and public sector banks which have tied up with many AMCs for distribution.
Meanwhile, in February, Syndicate Bank had entered into an equity tie-up with Birla Sun Life for bancassurance however the proposal is yet to be approved by IRDA. As of now, Syndicate Bank does not have partnership with any life insurance company for distributing its product.
"Until we receive approval from IRDA, we plan to revive insurance distribution business. We will float an RFP to identify the insurance company. " said Mr Sanghvi, who took charge of the bank in March this year.
He indicated that the bank will now aim at improving its retail loan book by improving service and reducing the loan processing time to 7 days. The retail advances stood at Rs 24,725 crore or 22% of the total advances book. "We plan to do away with third party guarantee in homes loans to attract customers," he said.
The bank plans to add 300 new branches to its existing network of 2710 branches. It also plans to increase automated teller machines by 500. It currently has 1210 ATMs.
He said that the bank has targeted a credit growth of 18-19% and deposit growth of 15-16 this fiscal year. Syndicate Bank had reported a credit growth of 13.7% and deposit growth of 16.4% in 2011-12. In the same year its net profit rose 25% to Rs 1313.4 crore.
Source: EconomicTimes
Disclosing this, bank's CMD M G Sanghvi said, "Distribution of both insurance and mutual funds will help us boost fee income. We are aiming at an annual growth of 30% this fiscal year." The bank's fee income rose 17.5% to Rs 1075.8 crore in fiscal year 2010-11. As of now, the bank does not sell mutual fund schemes to its customers unlike many private and public sector banks which have tied up with many AMCs for distribution.
Meanwhile, in February, Syndicate Bank had entered into an equity tie-up with Birla Sun Life for bancassurance however the proposal is yet to be approved by IRDA. As of now, Syndicate Bank does not have partnership with any life insurance company for distributing its product.
"Until we receive approval from IRDA, we plan to revive insurance distribution business. We will float an RFP to identify the insurance company. " said Mr Sanghvi, who took charge of the bank in March this year.
He indicated that the bank will now aim at improving its retail loan book by improving service and reducing the loan processing time to 7 days. The retail advances stood at Rs 24,725 crore or 22% of the total advances book. "We plan to do away with third party guarantee in homes loans to attract customers," he said.
The bank plans to add 300 new branches to its existing network of 2710 branches. It also plans to increase automated teller machines by 500. It currently has 1210 ATMs.
He said that the bank has targeted a credit growth of 18-19% and deposit growth of 15-16 this fiscal year. Syndicate Bank had reported a credit growth of 13.7% and deposit growth of 16.4% in 2011-12. In the same year its net profit rose 25% to Rs 1313.4 crore.
Source: EconomicTimes
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