He was addressing the media before inaugurating an industrial finance branch in Chennai. The credit card will be launched in three months' time and Equifax would take care of the back-office service with regard to the credit business, he added.

The bank has also sought the Reserve Bank of India permission to trade in the bullion market.

Mishra said that the bank's deposits and advances have registered growth. Deposits increased by Rs 1,200 crore in the first half of the current fiscal to touch Rs 12,000 crore while advances improved by Rs 600 crore to touch Rs 5,600 crore. He said that the positive trend will continue even in the second half.

The bank has set up asset-recovery branches to reduce its non-performing assets (NPAs) whichcurrently stand at 8.28 per cent (March 1998). Mishra said that emphasis has been more on compromises as debt-recovery tribunals have failed to live up to expectations.

The bank is also in the process of linking its biggest centres as a part of technological upgradation to take on increased competition. It is taking advantage of the hub that is being set by the RBI in Hyderabad to connect its branches. Mishra said that orders have already been placed for 25 V-Sats and permission from VSNL has been obtained for leased lines. The bank has taken a $17 million loan from World Bank for computerisation and training. The bank has so far computerised 300 branches and another 100 branches are to computerised by the end of this fiscal.

Mishra also revealed that KPMG has advised the bank to shift its focus from geographical control to business segment-based control. At present, at the head office, the delegation of control among general managers is on the basis of regional offices. KPMG has suggested that this bechanged on the basis of business function such as wholesale banking and retail banking, among other things.

The agency has also recommended that the bank open more specialised branches and the opening up of the industrialised finance branch in Chennai was in that direction, he said.