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Monday, April 29, 2013

Corporation Bank rating branches based on performance

When you meet your Corporation Bank manager next time, ask him/her about the rating of the branch.

Is it five-star or nil? The manager might say five-star, if the branch had done extremely well in the 17 parameters set by the bank. For the manager, the competition is no longer from outside. It is within the organisation.

Ajai Kumar, Chairman and Managing Director of Corporation Bank, told Business Line that the bank has started rating its branches based on their performances. The best performers will be awarded, and corrective measures will be initiated in the case of poor performers.

As business profiles vary depending on whether they are rural, semi-urban, urban or metro branches, the bank has given different weightages for the 17 parameters in each of these segments.

For example, more weightage has been given for savings bank (SB) accounts in rural branches and less for current account (CA) deposits. In the case of metro branches, weightage is more on CA deposits and less on SB accounts.

If the overall score of all the 17 parameters is 100, the score for average SB deposits is assigned at six for rural branches and four for metro branches. In the case of average CA deposits, the score is three for rural branches and six for metro branches.

More weightage is given for agriculture lending in rural branches and less in metro branches.

The heads of 31 zones of the bank have been asked to review the performance on a weekly basis. The bank is taking the incremental performance of the branches into consideration in this ranking, and not the terminal or the quarter-end or year-end figures, he said.

Data analysis

Stating that the biggest differentiator today is the data analysis, Ajai Kumar said: “If your analytics are strong, it will give you real-time information where things are not happening and will help take corrective actions,” he said.

Earlier branch reviews used to be full of power-point presentations taking hours together. With the introduction of this system, the weak points in the branch can be identified within minutes, he said.

The rating analytics help the bank to work out strategies to improve low-ranked branches.

The bank has decided to give awards to the top three branches in each zone that have achieved not less than three-star rating. Now there is competition among all branches to become star performers, he added.

Source: thehindubusinessline


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