New BoI chairman S Rajagopal held his first meeting with the heads of all its foreign branches on Monday. Speaking to the press after the meeting, Buch said the bank will focus its attention on gaining more correspondent banking business.

Bank of India is the second bank after Bank of Baroda to go aggressive in getting corresopondent business of other Indian banks. At present, most of the correspondent business of Indian banks is bagged by large US banks like Bankers Trust and Chase Manhatten.

Most smaller Indian banks do not have overseas branches and their transactions involving overseas business, like clearing operations,are serviced through their correspondent bank. Among the Indian banks only State Bank of India, Bank of Baroda and Bank of India have branches in the United States.

"We will approach other Indian banks for correspondent banking business by February, 1999, after the major technology upgradation currently on in our New York branch is over," said Ranjana Kumar, general manager in charge of BoI's US operations. She also said that in a year's time, the branch hopes to get around 30 per cent of its business from correspondent banking. The London branch of the bank is already active in offering correspondent banking services to a host of Indian banks.

The foreign operations of Bank of India contribute over 30 per cent of its profits and about 25 per cent of the bank's business. Foreign branches, amounting to 19, at present contribute in a significant way to the treasury operations of Bank of India. The bulk of this business is brought in by the branches in New York, London and Tokyo. The balance sheet size ofBank of India's entire international operations is currently about $3.1 billion. Out of this, the Japanese, London and New York operations account for nearly 90 per cent of the business. The bank is in the process of opening new offices in Trinidad & Tobago and Tanzania.