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Santanu Sanyal

KOLKATA, Aug. 28

ALLAHABAD Bank proposes to strengthen its relationships with its foreign correspondents, according to Dr B. Samal, CMD of the bank.

On his return from a trip to New York and London, Dr Samal told Business Line here that discussions in this regard were held with the senior officials of Citibank, American Express Bank, HSBC Bank as also of two Indian banks, namely, Bank of Baroda and Syndicate Bank, doing good business there.

With the foreign banks, the discussion centred mainly around exploring the scope for strategic co-operation in the fields of training and development, particularly in asset-liability management, risk control system, treasury management and technology- driven banking.

"Our experience as well as scale of operation in these fields is limited; we therefore need knowledge inputs from the foreign banks known for their expertise in the fields,'' Dr Samal observed.

"They can send their experts to teach our people about the new developments; also, our officers could be sent to those countries.''

While showing interest in doing business with India, the foreign banks, he pointed out, offered foreign currency line of credit at reasonable rates. They also wanted the bank to take necessary steps so that there was better use of cross currency rates provided by them while covering position.

The interest rates in the western world were at low ebb. The US economy was yet to recover fully from the impact of the September 11 attack. Added to it were the big corporate scams. As a cumulative effect of all these, the state of the capital market was nothing to cheer about. The banks were flush with funds and there was constant pressure on the spread, he said.

The officials of the Indian banks urged Dr Samal to divert to them a portion of Allahabad Bank's present business with the foreign banks acting as correspondents. They also wanted to know if Allahabad Bank could open Nostro account with them and consider their offer while making overseas investment for short duration.

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