Corporation Bank Company

Corporation Bank Company

Company Overview

Founding Date and Background

Corporation Bank was founded on March 12, 1906, in Udupi, India, with an initial capital of ₹5,000. The founders, Suryadev Sharma Bhumihar and Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur, established the bank with principles rooted in the Swadeshi movement led by Bal Gangadhar Tilak, aiming to promote Indian self-reliance and economic independence.

Parent Company/Ownership Structure

As of April 1, 2020, Corporation Bank merged with Andhra Bank to form a unified entity under the Union Bank of India, which is a public sector undertaking wholly owned by the Government of India. Therefore, Corporation Bank no longer operates as an independent entity but is now part of Union Bank of India.

Headquarters Location

The headquarters of Corporation Bank was located in Mangalore, Karnataka, India. This strategic location allowed the bank to serve a diverse clientele across the country.

Global Business Scope

Before its merger, Corporation Bank had a pan-Indian presence with a network of 2,432 fully automated branches, 3,040 ATMs, and 4,724 branchless banking units. The bank provided a wide array of financial services to both retail and corporate clients, although its global operations were primarily limited to Indian expatriates and businesses.

Main Regulatory Bodies

Corporation Bank was regulated by several key bodies, including:

• Reserve Bank of India (RBI)
• Securities and Exchange Board of India (SEBI)
• Ministry of Finance, Government of India

Company History and Development

Key Milestones

• 1906: Establishment of Corporation Bank in Udupi.
• 1980: The government took over the bank under the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance.
• 2019: Announcement of the merger with Andhra Bank.
• 2020: Completion of the merger with Union Bank of India.

Business Expansion Journey

Corporation Bank expanded its services over the years, introducing various banking products such as retail banking, corporate banking, investment banking, and wealth management. It also launched innovative products like the RuPay credit cards in December 2017, enhancing its service offerings.

Customer Base Growth

The bank had a significant customer base, serving millions of individual and corporate clients across India. As of March 2019, Corporation Bank employed approximately 18,935 individuals, reflecting its extensive operations and customer service capabilities.

Platform Development History

Corporation Bank was at the forefront of technology adoption in banking. It introduced internet banking facilities and automated teller machines (ATMs) early in the 2000s, significantly enhancing customer convenience and operational efficiency.

Important Awards or Recognitions Received

Throughout its operational history, Corporation Bank received various awards for excellence in banking services, particularly in delivery channels and customer service. These recognitions underscored its commitment to quality service and innovation.

Trading Services Offered

Forex Trading Options

Corporation Bank offered forex trading services, providing clients access to multiple currency pairs. The exact number of currency pairs may vary, but typically banks of this scale offer major pairs such as USD/INR, EUR/INR, and GBP/INR.

Stock Trading Options

The bank facilitated stock trading services, allowing clients to invest in equities listed on Indian stock exchanges. It provided brokerage services and investment advice for retail and institutional clients.

CFD Trading Products

Corporation Bank did not specialize in Contracts for Difference (CFDs) as part of its core banking services. However, it may have offered related investment products through its wealth management division.

Other Financial Instruments

The bank provided a range of financial instruments, including:

• Commodities: Investment options in gold and silver.
• Fixed Income: Government and corporate bonds.
• Insurance Products: Through partnerships with insurance companies.

Special Services or Unique Advantages

Corporation Bank was known for its customer-centric approach, providing personalized banking solutions and a robust digital banking platform. Its extensive branch network allowed for greater accessibility to banking services for customers in various regions.

Regulatory and Legal Background

Detailed Regulatory Information

Corporation Bank was subject to regulations from several authorities, including:

• Reserve Bank of India (RBI): The primary regulator for banks in India.
• Securities and Exchange Board of India (SEBI): Regulated the banks investment and stock trading activities.
• Insurance Regulatory and Development Authority of India (IRDAI): Oversaw insurance-related services.

Legal Entity Structure by Region

As a public sector bank, Corporation Bank operated under the legal framework established by Indian banking laws. Its operations were primarily concentrated in India, with limited international exposure.

Client Fund Protection Measures

Client funds were protected under the Deposit Insurance and Credit Guarantee Corporation (DICGC), which provided insurance coverage for deposits held in banks up to a certain limit.

Countries/Regions Served

The bank primarily served clients within India, though it had facilities to cater to the needs of Indian expatriates abroad, especially in regions with significant Indian populations.

Compliance History

Corporation Bank maintained a compliance history in line with the regulations set forth by the RBI and other regulatory bodies, ensuring transparency and accountability in its operations.

Competitive Landscape

3-5 Main Competitors

Corporation Bank faced competition from several major public and private sector banks in India, including:

• State Bank of India (SBI)
• Punjab National Bank (PNB)
• HDFC Bank
• ICICI Bank
• Axis Bank

Positioning in the Industry

Before its merger, Corporation Bank was positioned as a mid-sized public sector bank with a focus on retail and corporate banking. The merger with Andhra Bank into Union Bank of India aimed to enhance its competitive positioning in the banking sector.

Market Differentiation Factors

Corporation Bank differentiated itself through its extensive branch network, customer service, and range of banking products tailored to meet the needs of diverse customer segments. Its commitment to adopting technology in banking services also set it apart from many competitors.

In conclusion, while Corporation Bank has ceased to exist as an independent entity following its merger with Union Bank of India, its legacy and contributions to the Indian banking landscape remain significant. The bank's history reflects a commitment to customer service, innovation, and consistent growth in a competitive environment.

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For more detailed information on Corporation Bank's services and history, please refer to the following links: Learn more about Corporation Bank.