Sources said the bank started with the cash management services by opening aquick collection service centre in the city. "During the last one year thebank has converted three such centres into full-fledged branches and onemore quick collection service centre has been opened at Ludhiana," sourcessaid.

Allahabad Bank has already set up a separate cash management servicesdepartment at its head office. It also plans to set up a centralisedprocessing centre in the city which will be networked to all other quickcollection service branches.

Chairman and managing director B Samal confirmed this development and addedthat corporate houses like Nicco Corp and Andrew Yule and Srei InternationalFinance are among its clients.

"We have a vast network of branches in Uttar Pradesh, Bihar, Madhya Pradesh,West Bengal and in the north eastern states. This is our main strength inthe business of cash management services. Few banks in this business havesuch a vast network of branches," Samal said.

He said quick collection services would also be launched in Delhi. "We wouldstart this service in Delhi some time in June," Samal added.

For the year to March 31, 2000 deposits were Rs 16,907 crore from Rs 14,812crore of the previous year. Similarly, advances also increased from Rs 7,274crore to Rs 8,859 crore. Net profit for the year 1998-99 was Rs 135 crore.Allahabad Bank has also taken up ambitious plans of computerising itsoperations. "On April 1 last year, 164 branches were computerised. Duringthe next one year it was expanded to 299 branches. We have targeted toincrease it to around 400," the chairman said.

According to Samal, the bank will introduce telebanking, internet bankingand multibranch banking at a cost of around Rs 5 crore. "Telebanking wouldbe introduced in eight branches in Calcutta and multi-branch banking wouldbe introduced in seven branches in Lucknow," Samal added.

He also said the Rs 83 crore public issue is unlikely to come up beforeSeptember as the final clearance from Reserve Bank of India would come after1999-2000 results are finalised. "Thereafter we would send the draftproposal to Sebi," he said. For the current financial year the bank hastargeted a total business of Rs 30,000 crore against Rs 26,000 crore of theprevious year. The additional business is likely to be generated fromadditional deposit mobilisation of Rs 2,500 crore and additional loans ofabout Rs 1,500 crore.