The Hindu : Karnataka / Bangalore News : Syndicate Bank gets Centre's nod to set up BPO subsidiary

Online edition of India's National Newspaper
Wednesday, Nov 23, 2005

Karnataka

Karnataka - Bangalore

Syndicate Bank gets Centre's nod to set up BPO subsidiary

Special Correspondent

The bank will utilise only its `surplus manpower, premises and resources' to set up the proposed BPO

Bangalore: Syndicate Bank has received "in-principle approval" from the Union Government to set up a subsidiary for business process outsourcing (BPO) operations.

As per the approval granted by the Union Finance Ministry recently, Syndicate Bank has been allowed to provide BPO services initially to financial institutions and clients of the bank.

Besides, Syndicate Bank will utilise only its "surplus manpower, premises and resources" to set up and run the proposed BPO.

Syndicate Bank Chairman N. Kantha Kumar said that the BPO subsidiary will cater to back office functions such as maintenance of credit card, debit card, ATM related data and reconciliation of bank accounts. The BPO will also carry out back-office functions relating to the bank's e-products, Tier-II bonds, maintenance of reconciliation of Government Business Transactions and Provident Fund, Pension and Gratuity Trusts.

Prakash P. Mallya, Executive Director, Syndicate Bank, told The Hindu that the bank proposes to utilise the surplus premises in Manipal, Bangalore and Chennai to start BPO operations.

"The plan to start a BPO subsidiary was also aimed at gainfully deploying staff who were rendered obsolete in the wake of the massive computerisation programme undertaken by the bank," Mr. Mallya said.

In due course, Syndicate Bank would extend its BPO services to customers other than financial institutions and clients of the bank, subject to approval from the Union Government, Mr. Mallya stated.

Syndicate Bank is expected to start its BPO operations in about two months after fulfilling the formalities, including incorporation of the new subsidiary company.

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