MUMBAI, India -- UTI Bank and Karur Vysya Bank have signed a memorandum of understanding for sharing ATMs in India, the third such arrangement by the former, according to a report in India Times.
"We feel that shared networks will be the future of the ATM network as this will minimize 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 minimize the cost of servicing customers," UTI Bank Chairman and Managing Director P J Nayak said.
UTI Bank has a network of 175 branches 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 year.
Karur Vysya Bank has 17 ATMs and 212 branches in 170 cities.
The ATM sharing arrangement will begin on completion of switch-compatibility and once the other software infrastructure is in place.
UTI Bank already has such an arrangement with foreign banks BNP Paribas and ABN AMRO Bank. (See related stories Indian banks take different approaches to ATMs and More Indian banks sharing ATM networks)
Last week, public sector banks Corporation Bank and Oriental Bank of Commerce inked a similar ATM sharing agreement.
