According to him, the switch to US GAAP will boost the confidence of shareholders in the strength of the bank. It will only be the second nationalised bank to adopt international accounting standards. The move wil also enable OBC to access Nasdaq or other markets whenever it needs for the resources.

As for its moves to set up a joint venture in insurance, Mr Narang said it had been looking for long-term control in the venture, but foreign companies were unwilling on that score. He saw a quick "burn-out" in the newly liberalised sector and did not see economic sense in locking up nearly Rs 300 crore without hopes of getting any returns till seven years. The same amount invested for more productive channels may help build up a much more consolidated base for the bank, he asserted. Accordingly, the bank would be roping in a consultant to identify the right insurance company out of five shortlisted proposals for distributing their products. The selected company would need to have a strong brand presence, long-term commitment to the market, credibility, etc.

He said the present focus of the bank was on connectivity of branches through 160 VSAT and leased lines. OBC has taken up a Rs 30-crore project to computerise 80 per cent of its branches by the year-end. It would also install about 50 ATMs across the country. The bank is also gearing up to enter primary dealership and has trained over 15 personnel abroad for the venture. Regarding its post-VRS scenario, Mr Narang said computerisation has helped the bank readjust itself after nearly 750 employees having been relieved. At the head office, administration expenses has been cut down drastically with non-replacement of the 70 VRS optees. Productivity is being monitored and redeployment of staff effected at branches that faced any staff shortage, is going on, Mr Narang said.