Date:20/02/2006 URL: http://www.thehindubusinessline.com/2006/02/20/stories/2006022000861200.htm

Back Syndicate Bank targets Rs 700-crore net profit

Our Bureau

Mumbai , Feb. 19

SYNDICATE Bank is targeting a net profit of Rs 700 crore and a total business of over Rs 84,500 crore by the end of 2006-07.

The bank is also planning to start distribution of mutual funds within three to four months to augment its fee income, said Mr Prakash Mallya, Executive Director, Syndicate Bank.

Mr Mallya was speaking at a conference to celebrate the second year of its bancassurance tie-up with Bajaj Allianz Life Insurance Company Ltd.

The bank's wholly owned business process outsourcing (BPO) subsidiary will also kick-start operations before the end of this fiscal. The BPO will take care of the bank's data related back office operations such as credit card operations and also offer services such as filing of income tax returns online to its clients.

The bank is also in the process of signing up a memorandum of understanding with CMC Ltd to start the Syndicate Institute of Banking Management, which will offer banking and IT-related courses to other banks and financial institutions.

From the current strength of around 1,950 branches it hopes to expand to 2,000 branches by March.

"We are heavily biased towards agriculture income as 57 per cent of our branches are in rural and semi-urban areas," Mr Mallya said. In the first 10 months of this fiscal, the bank has collected premium of Rs 80 crore against Rs 50 crore in 2004-05. The bank is targeting total business of Rs 100 crore by March and Rs 30 crore income, said Mr R.K. Abrol, General Manager.