New Delhi | Aimed at improving efficiency, public sector Canara Bank’s board has approved organisational restructuring by moving to ’4-tier system’ that will allow the lender to set up regional offices for a better connect with branches across the country.
The executive board meeting held on Tuesday permitted the bank to move to 4-Tier system i.e., Head Office, Circle Offices, Regional Offices and Branches in the next financial year in a phased manner, Canara Bank said in a BSE filing today. The existing system of 3-Tier consists of Head office, Circle Offices and Branches. The bank said this is being done to enhance the connection between the branches and controlling offices, strengthen the control mechanism and to improve business and profitability by improving the operational efficiency.
Public sector banks are under pressure to bring down their non-performing assets and improve efficiency. On Monday, another public sector lender Indian Overseas Bank (IOB) said it will rationalize the number of its regional offices by closing 10 such offices to improve efficiency. Indian Overseas Bank said it currently has 59 regional offices and seven zonal offices, which provide support and guidance to branches, which are undertaking business activities and are required to monitor the performance of branches.
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