MLA JR Lobo dejected over Corporation Bank moves to shift headquarters to Bengaluru

MLA JR Lobo dejected over Corporation Bank moves to shift headquarters to Bengaluru

Mangalore Today News Network

Mangaluru Nov 5, 2016: MLA JR Lobo has said that he was dejected over the plan of Corporation Banks’s management to shift the Bank’s Corporate Office from Mangaluru to Bengaluru.

 

Addressing media at Canara Club on Saturday November 4th, he said that Corporation Bank is a Bank which primarily  originated from Mangaluru and  has a vast history of over 100 years. The latest move will be huge drawback for Mangaluru, he said.

He also said that  previously if Vijaya Bank and Canara Bank head quarters were shifted to Bengaluru, now Corporation Bank which is one of the renowned nationalized banks in India, with over 2300 branches, 3040 ATM’s and 240 e-lobbies, too was trying to follow them. 

During its 109 years of existence,  Corporation Bank was able to gain profit of over Rs 1500 crores every year, but in 2015-16, Corporation Bank is going under huge loss of Rs 506 crores, he said.

For this purpose, Corporation Bank has acquired 8 acres of land in Yelahanka to construct new headquarters at an estimated cost of Rs 1,000 crores. Corporation Bank has no concern about the loss but was  spending public money of Rs1000 crores to shift their headquarters to Bengaluru, he added.

"Mangaluru is going to be a smart city and planning to invite investors to Mangaluru and the city is on  the verge of matching with Bengaluru, but on what basis is the bank shifting its head quarters ?, he questioned.

 "Speculation was that the directors of the bank find it difficult to travel to Mangaluru to attend board meetings, if this is the reason then the directors should resign," he demanded.

KCCI President Jeevan Saldanha said that the move of  Corporation bank will be a huge drawback. Corporation bank is the asset of Mangaluru, he said.

Recalling an earlier instance when  Canara Bank spent Rs 800 crores to just change their logo, he said it was nothing but a national waste. "If we fail to retain Corporation Bank in Mangaluru then how will investors agree to invest in  IT companies in Mangaluru ?," he questioned.