The Thrissur-based private bank South Indian Bank Limited
is planning to increase sales of financial products of
other companies so as to increase its fee-based income.
Rs1 crore last year from this activity the bank is targeting
a fee based income of Rs8 crore this fiscal. Dr V A Joseph,
chairman and CEO said the target for the current year
is Rs8 crore.
bank has tied up with six mutual funds, life and non-life
insurers to sell their products through its branches.
Wednesday the bank signed a bancassurance deal with the
Pune-based Bajaj Allianz General Insurance Company Limited
scrapping its earlier deal with United India Insurance
now have a 200-member strong separate marketing team to
sell these products," Dr V A Joseph, chairman and
CEO told reporters in Chennai on Wednesday after signing
a new bancassurance deal with Bajaj Allianz General Insurance
bank plans to tap its Non Resident Indian (NRI) customer
base to sell health insurance policy of Bajaj Allianz
apart from convincing its borrowers, corporate and others,
to take property and group insurances through it.
bank has scrapped its deal with United India Insurance
Company Limited as it was not happy with the insurer''s
claims settling process.
the fiscal 2007-08 as the year of youth, the bank is turning
young by recruiting fresh graduates. Out of 500 recruitments
planned this fiscal, South Indian Bank has hired 100.
fresh recruitments, 25 per cent of our staff will be under
25 years of age. If that is not done, the average age
would have shot up to 52," Dr.Joseph said.
hiring popular film hero Mammootty as its brand ambassador,
South Indian Bank is targeting the high earning youth
with its ''youth plus'' savings scheme offering several
hi-tech services free like mobile banking, international
ATM and debit card, opening of depository account, mailing
of newsletter that details the developments in the financial
the current fiscal South Indian Bank is targeting a total
business of Rs25,000 crore (deposits Rs14,700 deposits
and Rs10,300 crore advances). On the non-performing asset
(NPA) front, Dr.Joseph said the target is to bring the
net NPA down to less than 0.5 per cent from the current
0.88 per cent.
order to meet its capital requirements, the bank is planning
a Rs400 crore private placement. Post-private placement,
the bank''s networth would increase to Rs1000 crore.
bank has received licence to open 28 branches out of which
12 will be opened this year and the balance the next fiscal.
It will also add 20 more ATM locations this year. Presently
the bank has 484 branches and 180 ATM centres.
to Dr Joesph, the bank is spreading is reach to northern
parts of India as it finds low cost deposits higher there.
Opening a regional office in Kolkata the bank will then
target the north eastern states, he added.