Corporation Bank inks MoU with OBC, Indian Bank

Mumbai, Nov 20: The public sector Corporation Bank has entered into a Memorandum of Understanding (MOU) with Oriental Bank of Commerce (OBC) and Indian Bank for OIC alliance on November 17, 2006, in line with the Memorandum of Intent signed with these banks on September 15, this year.

Under the MoU, the banks will jointly foray into the capital market and other financial ventures, the Corporation Bank said in a notice to BSE. They will collaborate for market research and product development and undertake sharing of treasury&IT/Infrastructure resources.

The three banks will build a payment system and share a network for selling financial products on behalf of the alliance partners.

Further, they will build in a common approach to delivery channels like ATMs, Card Business, Bancassurance etc. The banks will also undertake credit syndication and project appraisals.

The MoU is not equivalent to explicit or implicit merger. It clearly states that legal identity of each of the institution shall be maintained. The main object of the Memorandum of Understanding (MOU) is to reap the advantages of the economies of scale for the benefit of all stake holders. It also calls for the creation of various advisory councils as well as execution, coordinating and implementation committees.

UNI