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Saturday, Jul 10, 2004

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Corporate Results - Regional Rural Banks
Money & Banking - Financial Performance

North Malabar Gramin Bank net up 43 pc

Our Bureau

Thiruvananthapuram , July 9

THE Kannur-based North Malabar Gramin Bank (NMGB) has posted a net profit of Rs 16.20 crore in 2003-04, an increase of 43 per cent over the previous year's profit of Rs 11.29 crore.

Consequently, the reserves of the bank touched Rs 100 crore, which is one of the highest among the regional rural banks in the country, according to Mr S.S. Shet, Chairman.

The profitability improved through prudent asset-liability management, recovery of non-performing assets and austerity in expenditure, he said.

During the year, the total business increased to Rs 1,160.75 crore, a growth of 19.72 per cent over the previous year. Deposits grew to Rs. 616.34 crore from Rs. 519.67 crore, while the advances went up 21 per cent to Rs. 544.41 crore.

The major share of the advances was for the priority sector and the total credit disbursed was Rs 461.32 crore. The bank's credit-deposit ratio stood at 88 per cent.

The NRE deposits amounted to Rs. 89 crore spread over 11,500 accounts. The total number of depositors was 8.89 lakh, while the borrower base was at 2.84 lakh.

The bank is actively engaged in micro credit dispensation through self-help groups and during the year under review, 536 groups were linked to the bank with a credit disbursal of 3.13 crore. So far, it has linked more than 1,600 groups.

The productivity per employee rose from Rs 97.64 lakh to Rs 1.17 crore. The per-branch business was at Rs 7.64 crore, which is claimed to be one of the highest among the 196 RRBs in the country.

During the current year, the bank is targeting total business of Rs 1,650 crore, comprising deposits of Rs 890 crore and advances of Rs 760 crore. It has also set an ambitious target of doubling the total business by 2006.

With the extension of the bank's area of operation to Ernakulam and Kottayam districts, the total number of branches now stands at 152, including three extension counters. Plans are afoot to open branches in Alapuzha district also on getting the necessary approval from the competent authorities.

The bank will launch a slew of new products during the year. They include "Jalanidhi" for financing rainwater harvesting, retail credit card for the benefit of retail traders, a scheme for financing parents for meeting the expenses of school-going children and a personal loan scheme for farmers.

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