Financial Daily from THE HINDU group of publications
Sunday, Jan 13, 2002
Alliances & Joint Ventures
Money & Banking - Foreign Banks
Stanchart in alliance with Dept of Posts
NEW DELHI, Jan. 12
THE Department of Posts and Standard Chartered Finance Ltd, a product distribution arm of the Standard Chartered group, on Saturday signed a memorandum of understanding (MoU) for entering into a strategic alliance to further the growth strategy of both the organisations.
For the Department of Posts, this is yet another milestone in the direction of leveraging its strength for revenue generation and business expansion.
Under the alliance, India Post will market credit cards and other consumer banking products of Standard Chartered Bank through Data Post. While the partnership will enable Stanchart to leverage the extensive national network of post offices to distribute and market its products, the post offices will also be the payment collection points for the bank's credit card customers. The bank will also utilise Speed Post extensively to send its credit cards to customers.
In effect, the alliance will enable India Post to enlarge its business operations by way of greater utilisation of Speed Post, Media Post, Data Post and e-bill Post. And, for the vast base of consumers who transact at post offices throughout the country, the alliance will give them access to new products of the Standard Chartered bank under one roof.
Mr R.S. Nataraja Murti, Chief General Manager, Business Development, Department of Posts, and Mr Jaspal Bindra, Regional General Manager, Standard Chartered Group, India and Nepal, signed the MoU at a function held here at Dak Bhavan.
Commenting on the alliance, Mr B.N. Som, Secretary, Department of Posts, said, ``India Posts is striving to provide world-class services to the people of India by providing customer-oriented and technology-focussed products... The alliance with Standard Chartered Group will be a step in this direction.''
Speaking on the occasion, Mr Bindra said: ``Strategic alliances with leading organisations to reach out to new customers through new channels has been identified as one of the key opportunities for growth of our customer banking franchise.''
The Stanchart group has introduced a host of retail products designed for banking convenience. These include `Sapnay' credit card, international debit card that provides free access (up to four transactions per month) to over 1,500 Visa ATMs which is a first in the banking industry, `Mileage', an overdraft facility against the security of a car and `Smart Credit', a personal line of credit for salaried customers. All these innovative products will be on offer through the Department of Posts.
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