With Reserve Bank of India gearing up from bring up guidelines for introducing new lenders into the lending space, the existing banks are preparing to face higher competition. On this note, public sector lender, Corporation Bank is planning to expand via take over of smaller banks. Presently it is eyeing Pune based Rupee Cooperative Bank.

According to Ramnath Pradeep, ch¬air¬¬man & managing director of Corporation Bank, "We are still evaluating the proposal. Nothing has been finalised as yet."

Indrakumar Oswal, chairman of Rupee Cooperative Bank, however refused of any such thing. "There is nothing so far. There have been no preliminary talks for a merger," he said.

Rupee Cooperative Bank currently has a branch count of 36. If the deal is successful, then Corporation Bank can increase its branch count in Maharashtra which currently figures to 122.

Corporation Bank currently has 1255 branches of which 336 are in Karnataka, 135 in Tamil Nadu and 122 in Andhra Pradesh and Maharashtra.