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Three state-owned banks to hunt in pack (BS 14.09.06) Three public sector banks are set to form an unprecedented strategic alliance. The three banks are Corporation Bank, Indian Bank and Oriental Bank of Commerce. The alliance will allow the banks to collectively build loan assets as well as fee-based businesses. They will leverage the combined strengths of their balance sheets, though the pact does not envisage any equity participation. The combined asset base of the three banks is Rs 1,47,079 crore, higher than that of Punjab National Bank, the country’s largest nationalised bank. The plan includes sharing branches, automated teller machines (ATMs) and even employees. One bank's employee can work in another bank on deputation. Similarly, all three banks will discuss expansion plans for branches and ATMs before setting them up to exploit geographical and locational synergy, a source in Delhi said. The boards of Corporation Bank and Indian Bank have already cleared the proposal. The Oriental Bank board will take up the issue on Friday. Next, the banks will sign a memorandum of understanding on the strategic alliance covering business, infrastructure and people. Corporation Bank Chairman B Shambamurthy and Indian Bank CMD KC Chakrabarty declined to comment on the development. However, they did not deny it.