2nd lead

Indian Bank to open branch in Jaffna to channel Delhi’s rehabilitation aid

[TamilNet, Thursday, 29 July 2010, 01:14 GMT]
The Chennai-based, state-run Indian Bank is planning to open a branch in Jaffna, and to facilitate an Indian government loan to Sri Lanka of US$ 200 million for the rehabilitation of internally displaced Tamils, media reports said. "Talks [with Sri Lanka] are in an advanced stage at the moment," chairman and managing director Mr. TM Bhasin told The Times of India earlier this week. Indian Bank has at present over 1,700 branches, the majority in Tamil Nadu (757) and Andhra Pradesh (230).

Asked about Indian Bank's plans in Sri Lanka, Mr. Bhasin told the Economic Times the Indian government has decided to lend Sri Lanka Rs.1,000 crore (USD 200m) as assistance towards rehabilitation of internally displaced Tamils there and "in order to channel the assistance through our bank we are opening a branch in Jaffna".

“There is also good business potential in Kandy," he added.

A couple of months ago , the bank had sent representatives to Jaffna to evaluate the possibility of setting up a branch, the Times of India said meanwhile.

Indian Bank already has a branch in Colombo and is also looking at the possibility of opening a branch in Kandy, as well as a representative office in Jakarta in Indonesia, the Times of India said.

Indian Bank had once had a branch in Jaffna, but it was closed some 14-15 years ago due to a resumption of Sri Lanka’s armed conflict, Mr. Bhasin told The Economic Times in April.