Allahabad Bank to set up retail hubsAllahabad Bank to set up six retail hubs; to speed up loan processing
Apnaloan.com Research Bureau
27 May 2008
Allahabad Bank is going to set up six retail hubs to speed up the processing of retail loans and also put in place Special Business Units (SBU) to boost its fee-based income. It has also identified Small and Medium Enterprises (SME) as the other thrust area.
The idea behind the hubs is to speed up processing of the retail loans. At present, education loan disbursement takes 2-3 days, which will now be reduced to 24 hours. The bank has tied-up with 250 colleges across the country for receiving online applications for educational loans. Similarly, auto loans will be disbursed in two days compared to a week currently.
The new hubs will be in place by three months and located across Chennai, Bhopal, Delhi, Kolkata, Mumbai and Lucknow. They will process personal, education and auto loans.
At present, the retail segment accounts for 17 per cent of the bank's total advances of Rs. 50,000 crore. Once the hubs become operational, they will increase credit contribution of the retail segment to 25 per cent by 2010.