Syrian Bank to reengineer its business processes
15 September 2006
Thrissur-based The Catholic Syrian Bank Limited (CSB)
is in the midst of planning a total reengineering of
several of its business processes to reduce the time
its customers spend in transacting business through
N R Achan, chairman of the bank, "The business
process reengineering (BPR) exercise will increase our
manpower utilisation and attain better operational capabilities."
from reducing the time spent by a customer at the branch,
the BPR is targetted at cutting the loan processing
time from around 71 days that it currently takes to
process large trade, business and industrial loans.
Even retail loans take around a fortnight to process.
the implementation of BPR the processing time for large
industrial or business loans is expected to come down
to 20 to 30 days and five days for retail loans,"
says N Sivaprasad, consultant, Pragna Consultants Pvt
Ltd, Chennai, the bank's BPR consultants.
bank will also centralise its retail loan processing
and other routine activity at four - five back office
centres. "We expect increased volume at reduced
cost," says K R Rajagopalan, assistant general
is interesting is that the BPR activity will go hand
in hand with the development of end-to-end core banking
solution. The bank has joined hands with Laser Soft
Infosystems Limited for development of core banking
B Suresh Kamath, managing director, Laser Soft, "The
core banking solution would be designed to implement
back office processing centres as required by the bank
and incorporate all BPR requirements." The browser-based
core banking solution is jointly being developed on
a J2EE platform.
a time when many other banks spend around Rs1 crore
per branch for implementing core-banking solution, the
345-retail outlet (320 branches, 25 extension counters)
bank has spent for its solution an average of Rs11 lakh
investment in software and hardware together is around
Rs40 crore," says Achan.
T B R Joseph, deputy general manager, "We considered
all the major core banking solution vendors in the country
and found Laser Soft to be most suitable for our operations."
from vetting the proposals submitted by the software
vendors, CSB officials visited several banks that have
implemented core-banking solutions to find out the customer's
found that in many cases the branches were not issuing
passbooks. Further the time taken to complete a transaction,
say purchase of demand drafts was particularly high.
addition, many vendors have just the core banking solution
and not the other software like cash management, rural
banking, trade finance, RTGS, etc. On the other hand
Laser Soft offers end-to-end banking solution,"
bank will implement the core banking solution across
all the branches in phases. In the first phase 80 branches
will be brought under the core banking solution and
the remaining branches would follow in the second phase.
solution is scalable to accommodate more branches as
and when CSB opens new ones. According to Achan, the
bank would open 50 more branches by the end of this
Rs10,000-crore business by 2008
a total business of Rs6983.72 crore (deposits Rs4288.85
crore, advances Rs2694.87 crore), Achan says the target
for CSB this fiscal is Rs8500 crore this fiscal.
performance is in line with the target. The total business
as on 11 September, 2006, is Rs7328.92 crore (deposits
Rs4473.97 crore, advances Rs2854.95 crore). We will
touch a total business of Rs10,000 crore by 2008,"
fiscal the bank closed its accounts with a net interest
income of Rs146.94 crore and a net profit of Rs6.14
crore. The banks investment portfolio stood at Rs1431.59
crore and yield on investment was 7.41 per cent. The
gross non-performing assets (NPA) stood at Rs159.92
crore and the net NPA was Rs74.79 crore.
about the bank's cost of funds, Achan says, "Our
cost of funds now is 4.78 per cent. Nearly 26 per cent
of our deposits are low cost. We expect further increase
in low cost deposits which in turn would reduce our
funds cost." Last year the banks cost of funds
was 5.16 per cent.
to officials, the implementation of BPR would release
people for marketing. The bank is earning well selling
life and non life insurance policies of Birla Sun Life
Insurance Company Limited and The New India Assurance
a capital adequacy ratio of 11.23 per cent the bank
up plans to raise Rs100 crore through a combination
of rights issue and a public and private placement.
However, the first will be the private placement of
60-lakh shares with foreign equity investors. "We
have given our proposals to Reserve Bank of India (RBI)
and await their sanction," adds Achan.
reports on Catholic Syrian Bank