UTI Bank, Karur Vysya sign MoU for ATM network sharing

MUMBAI: UTI Bank and Karur Vysya Bank have signed a memorandum of understanding (MoU) for sharing the automated teller machines (ATMs) in India, the third such arrangement by the former.
"We feel that shared networks will be the future of the ATM network as this will minimise geographical overlap of ATMs and provide better coverage to customers. At the same time, the sharing helps the banks to develop economies of scale and minimise the cost of servicing customers," UTI Bank Chairman and Managing Director P J Nayak said in a release here on Wednesday.
UTI Bank has a network of 175 branches and extension counters and 660 ATMs spread across 74 cities and towns.The bank plans to increase the ATM network to 900 in 80 centers by end of the current fiscal, he added.
Karur Vysya Bank chairman P T Kuppuswamy said the bank has 17 ATMs and 212 branches in 170 cities.
The ATM sharing arrangement, which was signed recently, commences on completion of switch-compatibility and once the other software infrastructure was in place, the release said.
UTI Bank already has such an arrangement with foreign banks, PNB Paribas and ABN AMRO Bank.
In the previous week, public sector banks Corporation Bank and Oriental Bank of Commerce had inked a similar ATM sharing agreement.