The Hindu Business Line : Canara Bank-sponsored RRBs do Rs 5,370-cr biz

THE public sector Canara Bank today announced that the total business of the eight Regional Rural Banks (RRB) sponsored by it increased to Rs 5,370 crore from Rs 4,737 crore during the financial year ending 2004, recording a growth rate of 13.99 per cent.

A Canbank release said that of the eight RRBs four were in Karnataka, three in Uttar Pradesh and one in Kerala.

During the year, the deposits of these banks increased by 12.40 per cent to Rs 2,993 crore. The advances increased by 16.07 per cent to Rs 2,377 crore.

After making provisions for the non-performing assets, the eight RRBs together made a net profit of Rs 90 crore, the release added.

Further, they maintained a high Credit to Deposit (C/D) ratio of 79 per cent during the FY 2003-04 as against the national average of 43 per cent in the RRBs segment.

The South Malabar Gramin Bank, one of the RRB sponsored by Canara Bank in Kerala had a C/D ratio of over 100 per cent - the highest outstanding credit among all RRBs in the country, the release said.

This RRB was also ranked as number one amongst all the RRBs in total business volume of Rs 1,820 crore as at March 2004.

Canbank's Chairman and Managing Director Mr R.V. Shastri, reviewed the performance of RRB's for the financial year ended March 2004.

For the current year, they are targeting a business growth of over 16 per cent to take the business to Rs 6,174 crore during the fiscal year 2004-05.