Corporation Bank signs MOU with OBC and Indian Bank

Corporation Bank has announced that Memorandum of Understanding (MOU) has been signed for OIC alliance with Oriental Bank of Commerce and Indian Bank on November 17, 2006 in line with the Memorandum of Intent signed with these Banks on September 15, 2006.

Broad areas as covered by the Memorandum of Understanding (MOU) are as follows:

1. Building payment system.

2. Sharing of IT resources / Infrastructure.

3. Sharing of Treasury Resources.

4. Joint foray into capital market and other financial ventures.

5. Common approach to delivery channel like ATMs / POS terminals / Card Business / Bancassurance etc.

6. Credit syndication and project appraisals.

7. Sharing training resources.

8. Common procurement of IT resources / other assets wherever feasible.

9. Sharing Network of alliance Banks for collection of various financial Instruments / utilization of surplus cash.

10. Collaboration for market research and product development.

11. Sharing Network for selling financial products on behalf of alliance partners.

12. Any other mutually acceptable beneficial areas such as publicity / public relation activities.

Memorandum of Understanding (MOU) also finalized creation of various advisory councils as well as execution / coordinating / implementation committees. It clearly states that signing of Memorandum of Understanding (MOU) does not tantamount to explicit / implicit merger. Legal identity of each of the institution shall be maintained. The main object of the Memorandum of Understanding (MOU) is to reap benefits of the economies of scale for the benefit of all stake holders.

Source : Equity Bulls

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