MUMBAI, January 28: ANZ Grindlays Bank will invest Rs 87.5 crore in developing a new technology platform -- ANZ commercial banking system. The investment is part of the bank's effort to streamline its domestic operations.Speaking to mediamen here, ANZ banking group's chief executive officer, John McFarlane said: "A new technology platform -- ANZ commercial banking system -- will be implemented over the next one year. We are installing a state-of-the-art communications system linking all our branches in the country to a modern centralized data processing facility in Chennai".
McFarlane expects the investment of Rs 87.5 crore would give ANZ, a technology platform second to none in India.
ANZ Grindlays Bank will modernise its domestic and international communications networks. As McFarlane says, "Historically, ANZ has been a little behind some other foreign banks on the technology side in India. This will no longer be true".
The bank will install a modern core commercial banking system and put in placean electronic customer service delivery in the corporate sector and through automatic teller machines (ATMs) on the retail side.
Branch relocation is high on ANZ Grindlays Bank agenda and it has applied to the Reserve Bank of India to execute the same.
An amalgamation of three banks--National Bank of India, Grindlays Bank and Lloyds Bank--38 out of the bank's 56 branches are located in three metros of Mumbai, Delhi and Calcutta.
"Our branches are not optimally located", admitted McFarlane.
The foreign bank's recent measures to streamline operations have paid off too.
For the year 1996-97, the bank posted a net profit of Rs 94 crore, which is just behind foreign bank pack-leader, Bank of America with Rs 97 crore in net profits.
According to ANZ Grindlays Bank's chief executive officer-India, Mehli M Mistri: "Our aim is to do better what we have been doing all along. We will introduce new products and services both on the corporate banking and retail side".
Credit cards, housing finance, carloans and a funds management scheme for which regulatory approval has been sought will be a thrust area for the bank. `Cashetts' an advance against share scheme is, however, no more a priority area. The bank has decided to stop expanding this business.
Says Mistri: "We have realised that the operational costs and returns on this service do not match. Therefore, advance against shares is no more an attractive option for the bank.
ANZ Grindlays Bank's investment banking arm, ANZIB will continue to manage major corporate accounts. ANZIB is active in arranging cross border finance and has won financial advisory mandates in the telecom, oil and power sectors.
A global investment banking division is now sought to be set up to provide top of the line services in project and corporate finance, advisory and capital market services. Accordingly, 46 product specialists will collaborate with global teams in the world's financial centres and Australia.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
