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Bank of India implements cluster

KOCHI: Bank of India has implemented cluster financing schemes to suit the needs of various local groups. Under these schemes, hassle-free loans are provided to members of traders/merchants’ associations, Private Bus Operators’ Association and Pineapple Growers’ Association.

Addressing a press conference, bank executive director K.R. Kamath said the bank had recently introduced financing schemes for members of the Houseboat Owners’ Association of Alappuzha and mini dairy units in association with the Neyyattinkara Integral Development Society and Milma. The bank had also introduced a new scheme to assist tailors in association with the Tailoring Workers Welfare Board of the State Government.

The bank’s 75th branch in the State was opened in Kochi on Friday. The bank will open branches at Thiruvananthapuram (Technopark), Chengannur, Kottakkal and Thalasserry. The bank’s credit-deposit ratio in Kerala is 95 per cent. The bank has taken over a private bank in Indonesia. Efforts are on for a tie-up to run a private bank in Nepal. The bank plans to open a branch in Pakistan.

It has procured licences for opening branches in Dhaka and Dubai. It will upgrade the representation office in Vietnam. It will establish a fully owned subsidiary in Tanzania. A representative office in South Africa and a wholly owned subsidiary in Canada are on the anvil.

The bank is also launching an insurance venture in collaboration with a Japanese insurance company.

Answering questions, Mr. Kamath said there was a slowdown in home loan sector. The response to the gold coin sale was good.

The bank has introduced several insurance products in association with National Insurance Company Ltd., Oriental Insurance Company Ltd., and ICICI Prudential Life Insurance Company Ltd. These include ‘Educational Loan Credit Assure’ wherein the education loan amount is paid by the insurance company in case of death of the insured and ‘Home Assure’ insurance scheme wherein home loan balance is paid by the insurance company in case of death of the borrower.

The bank has tied up with UTI Mutual Fund, Kotak Mutual Fund, HDFC Mutual Fund, ING Mutual Fund and Franklin Templeton Investments. Under the Star education loan scheme, the limit for studies in India has been increased from Rs.7.5 lakh to Rs.10 lakh and the limit for studies in foreign countries has been enhanced from Rs.15 lakh to Rs.20 lakh. During 2007-08, the bank sanctioned Rs.20 crore to 679 students.

Nagesh Pydah, general manager, and Babu V. Mathew, deputy general manager, were present.

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