Shifting Corporation Bank Head office Breach of Trust by Directors – MLA Lobo
Mangaluru: “It is painful to know that the Corporation Bank has decided to shift its head office to Bengaluru. Corporation Bank is one of the nationalized bank and a prestigious bank originated in Mangaluru. We are very proud that five of the major banks started in Mangaluru, namely Canara Bank, Vijaya Bank, Syndicate Bank, Corporation Bank and Karnataka Bank. We didn’t give a much thought when Vijaya Bank and Canara Bank shifted their Head Offices to Bengaluru, which was very soon followed by Syndicate Bank to shift their Head Office to Bengaluru. We had the satisfaction that at least we have Corporation bank here in Mangaluru. And surprisingly now Corporation Bank is shifting its Head Office to Bengaluru and the Bank administration has taken all the measures for the move. The present administration without giving any importance to the founders of the bank and for their own benefit the directors are going ahead with their decision to shift their Head Office from where it originated. At present, with all the modern technology businesses can be run sitting in any part of the country. We will try to see that Corporation Bank won’t shift its Head Office from Mangaluru”, said the MLA of South Constituency J R Lobo addressing media persons at a press meet held at the Kanara Club, Kadri here on November 5.
He further said “The Corporation Bank has 110 years of history and the Founder President Khan Bahadur Haji Abdullah and Haji Kasim Saheb Bahadur, committed to fulfilling the long felt banking needs of the people and also to inculcate the habit of savings, provided the much-needed impetus to founding a financial institution that would bring about prosperity to the society. The first branch was started in Udupi in 1906, the second branch was started in 1923 in Kundapur and in 1926 the third branch was started in Mangaluru. At present, the Corporation Bank has 2300 branches, 3040 ATMs and 240 E-lobbys’.”
“The corporation bank since its inception has made profit but in 2015-16 in the history of the bank, incurred a loss of Rs 506 crore. Now the bank is spending Rs 1000 crore to shift its Head Office. They are constructing a new building on an 8-acres of land. The contract has been given to MECON limited Ranchi which is also the Executing Agency for developing the bank’s owned properties located in Bengaluru. If we look at the present plan, it shows that the entire bank will be shifted to Bengaluru and only the shell will be left in Mangaluru. When the bank is incurring a loss of Rs 506 crore, why are they spending another Rs 1000 crore to shift the head office. This shows that the directors have no concern about the founders who had started the bank which is similar to leaving one’s mother in the hometown and move to another place” added Lobo.
He also said, ” It is learnt that the directors are facing difficulties to come to Mangaluru to attend the board meetings. Why are they wasting money when they are facing loss. In the present situation, we can sit anywhere and deal with the people worldwide. If the bank wants a larger place, they can acquire more land near the Mangaluru Airport, and extend the bank. We are concerned about the development of our city. If we do not oppose the shifting of the Corporation bank head office, we will be cursed by our future generations. It is our duty to oppose the shifting of the head office to Bengaluru. The directors of the Bank should answer us about their move to shift the Head office. It is a breach of trust by the directors of the bank. On what basis are the directors shifting the head office ? Why is it difficult for the directors to come to Mangaluru once in three months for the board meeting? Who gave the authority for shifting? If the bank shifts it will directly affect the economy of Mangaluru. We are worried about the development of Mangaluru”.
While concluding Lobo said, “Whoever feels uncomfortable to attend meetings in Mangaluru, such directors should resign. We don’t need such directors who see their own benefits forgetting the efforts of the founders who started the Bank in Mangaluru. We will protest against the decision of the directors to move the head office.”
The president of KCCI Jeevan Saldanha said, “The corporation bank is considered as our own bank because it originated from this region. If the intention of the bank is to move to Bengaluru which is already a congested city and if our asset is moved to Bengaluru, we will face severe problems because many people will lose their jobs. This kind of decision by the bank is a national loss. For changing the Logo, Canara Bank had spent Rs 800 crore years ago. The government is the major stakeholder and we need to convince the government to stop the Corporation Bank head office from being shifted. Connectivity is not an issue for the directors to attend the meeting”.
President of CREDAI D B Mehta said, “This is going to be a big blow to the real estate and construction industry. It is a big shock for us because in Mangaluru we find at least 5 flats occupied by the bank employees. If the head office of the Corporation bank is shifted to Bengaluru there will be at least 200 flats vacant. Corporation bank is a large national bank with national and international reach, which has brought industries as well as other businesses to Mangaluru. Mangaluru is listed in the smart city list and we want to create jobs. If we face job loss it will be a big disaster”.
Mayor Harinath, Sashidhar Hegde, Suresh Ballal, Lancelot Pinto, Vishwas Das, Sudheer T K, Savitha Misquith, Bhasker Moily, Kudpi Jagadish Shenoy and others were also present.