The Hindu Business Line : Canara Bank RRBs may see 21 pc rise in biz

The Canara Bank-sponsored regional rural banks (RRBs) are expected to see a rise in their business by 21 per cent during the financial year 2006-07 at Rs 9,227 crore.

A memorandum of understanding signed by the public sector bank with its RRBs today has set the target after evaluating its last year's performance of Rs 7,618 crore, which itself grew by 20 per cent over the previous year.

During FY 2005-06, the RRBs' deposits touched Rs 3,969 crore (17.66 per cent growth) and advances Rs 3,649 crore (22.71 per cent).

Mr M.D N. Rao, Chairman and Managing Director of Canara Bank, has asked the RRBs to gear up to face the emerging competition in rural business and urged them to move from lab models to field models.

Canara Bank sponsored one RRB each in Karnataka and Kerala and three RRBs in Uttar Pradesh, the bank said in a release here. RRBs continued to maintain high credit-deposit ratio of 92 per cent against the national average of 52 per cent for RRBs, a bank release said.

Pragathi Grameen Bank, which is a consolidated unit of four Karnataka-based RRBs after their amalgamation, made a net profit of Rs 74 crore after meeting a Rs 13.3 crore as arrears following a wage revision.

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