India Post News Service

CHICAGO: Thriving on growing mutual trust between the management and customers-investors, Mutual Bank has cracked such a fast pace in expanding its services horizontally and vertically that even many an American bank would feel envious.The bank recently opened its twelfth branch in Aurora, a south west Chicago suburb, close on the heels of a branch in Houston a month ago and two in New York-New Jersey a few months ago.

As put by Amrish Mahajan, the CEO and President of the bank, "expansion is our goal because only that way we can enrich ourselves and enrich the community at large."The bank changed hands a decade ago with an enterprising Indian businessman, Velu Chamy, decided to take over the Harvey headquartered facility in August 1998. Twelve branches in ten years is not a mean achievement and much more so when comparing its size and asset-income ratio.

The $38 million asset bank can now boast of asset worth over $1.25 billion while its asset-income ratio places it among the first 45 banks among 200 Illinoisan banks. The bank was formally launched at a glittering whole day ceremony on August 29 at its Aurora premises on 3999 75th street. James A. Regas, the vice chairman of the bank, cut the ribbon in the presence of 200 plus guests and community members who had flocked to greet the new bank and the staff. The bank management headed by Velu Chamy and Amrish Mahajan welcomed them all.

The day long ceremony was highlighted with lot of giveaways - water bottles, baseball caps and pens - a variety of refreshments and topping them all a new Special CD offering hefty high rate compared to that offered by many other community banks. James A. Regas incidentally heads yet another community bank, Broadway Bank.Amrish Mahajan in a talk to this paper said that the bank has grown horizontally and vertically.

Horizontally it has branched out to other States of the US besides opening branches at eight centers in Chicagoland. It has plan to go to Atlanta and Los Angeles in the near future. "We also would consider taking Mutual Bank to India but then we will have to wait. We need to have a strong base to enable us to run fast. The stumbling blocks could also be bureaucracy, red tapism and bank regulations," he said.He pointed out that bank has added to its staff heavily. From 38 employees it has a staff of 200 plus officers and office help.

"The best part is that we have a talented and fully satisfied staff. There is very poor turnover. We treat our staff as our family members and that gives them emotional security and attachment," he said. Regas had earlier observed that "our outstanding achievements are due to the expertise and dedication of our employees coupled with loyalty of our customers."Turning again to the growth and this time vertically, Mahajan added, "Vertically our growth reflects an increase in number of products and services offered to our customers".

In line with its strategic plan to grow vertically, the bank has launched residential mortgage services a couple of months ago and has also introduced on line cash management services for its business customers, Mahajan said.