Chennai: 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.

Earning 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.

The bank has tied up with six mutual funds, life and non-life insurers to sell their products through its branches.

On 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 Company Limited.

"We 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 Company Limited.

The 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.

The bank has scrapped its deal with United India Insurance Company Limited as it was not happy with the insurer''s claims settling process.

Terming 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.

"After 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.

After 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 sector.

For 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.

In 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.

The 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.

According 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.