The Hindu Business Line : `Retail deposits have to grow'

Retail deposits have to be mobilised on a larger scale, which is the challenge facing Andhra Bank and other banks too in the present context, according to Mr K. Ramakrishnan, Chairman and Managing Director of the Andhra Bank.

He was talking to the press here on Sunday morning after inaugurating the renovated zonal office here. Earlier, he also inaugurated an ATM at Kurmannapalem near the Visakhapatnam steel plant. Mr Y. Sivasagara Rao, Steel Plant Chairman and Managing Director, participated in the function.

Mr Ramakrishnan said the performance of the bank was satisfactory on all counts and its business had recently crossed Rs 56,000 crore. "Provisionally, our deposits have grown by 23.5 per cent and credit is up by 25 per cent, which is comfortable. But retail deposits may have grown by only 10-11 per cent. We have to focus on that and improve our performance. It is a challenge as the retail investor wants a better return," he said.

The emphasis would be on mobilising low-cost deposits by offering the customer quality service, he said. The bank was increasing its branch network as well as the number of its ATMs. "We opened 25 branches in 2005-2006. During the current financial year, 70 more will be opened, mostly in Andhra Pradesh and Orissa. We have at present 1,230 branches, of which 850 are networked. We have 400 ATMs. We plan to set up 130 more," he said.

He said the gross NPA had been brought down to 1.78 per cent from 2.48 per cent. The credit card division was also doing well, with a turnover of Rs 600-700 crore. "We want to consolidate the credit card business and bring down the NPAs," he added.

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