FM wants banks to bank on 3C mantra

Chennai: Finance Minister P Chidambaram has said that competitiveness, consolidation and convergence will drive the banking industry in the future.

In the future, competitiveness between banks would depend on the service they provide and the service capability would largely be dependant on their size, he said, adding that customers will demand all services under one roof.

"The quality of the organisation is important and should be subjective to the discipline of the market,? he said while inaugurating the 100th branch of the Bharat Overseas Bank Ltd (BOBL) in Chennai.

Urging the banking sector to give importance to credit disbursement, Chidambaram said that credit is the driver of the economy.

Speaking on the occasion, BOBL Chairman and CEO G Krishna Murthy said that the bank was targeting a growth rate of 30-35 per cent under the small and medium enterprises and retail banking sector.

BOBL, which achieved a business volume of Rs 4,500 crore, is also aiming to double its branch network by 2010.

The bank had recently declared 100 per cent networking of all its branches providing ?anywhere banking? facility.