S Malhotra, general manager of Syndicate Bank, said that since the bank had already implemented centralised banking solutions, high-end technology would make a number of employees redundant.
He said that the idea was to re-deploy these employees in BPO activities for foreign companies in the fields of life insurance and other financial intermediaries.
At present, the staff strength of Syndicate Bank is nearly 26,000. Besides entering the BPO arena, the bank was also planning to set up a subsidiary to act as an asset management company for floating a venture capital fund for rural development.
Meanwhile, the bank was issuing 50 million shares at a price of Rs 10 per share, the premium of which would be decided through the book-building route.
The issue would primarily augment Tier I capital to meet the Basel II norms on capital adequacy.
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