Corporation Bank Plans Investment Banking Foray
It may be a bit late, nevertheless it’s better than never. The state-owned Corporation Bank is planning to offer investment banking and related services through its wholly owned subsidiary CorpBank Securities Ltd, reports The Hindu Business Line. The paper quotes B. Sambamurthy, Chairman and Managing Director, as saying “We are examining a couple of activities in the capital market area, like investment banking.” However, the bank does not have plans to enter retail broking.
As against CorpBank, some of the other state owned banks/institutions like State Bank of India and IDBI have investment banking divisions - SBI Capital Markets and IDBI Capital, respectively. CorpBank Securities is currently engaged in the distribution of mutual fund products. It posted net profit of Rs 14.57 crore for the fiscal ended March 2007-08, against a loss of Rs 20.18 crore for the previous year. The net owned funds have gone up to Rs 142.85 crore (Rs 135.03 crore).
