The Hindu Business Line : Andhra Bank targets 19.4 pc growth in biz

Andhra Bank aims to increase its business volumes to Rs 67,350 crore during the current fiscal as against Rs 56,406 crore achieved for the fiscal ended March 2006. The target represents a growth of 19.4 per cent over last fiscal's total business, its Executive Director, Mr Kalyan Mukherjee, said.

Addressing newspersons here on Tuesday on the eve of tying up with HMT Tractors Ltd for tractor finance, he said the bank's advances to agriculture stood at Rs 4,073.28 crore during the last fiscal, constituting 18.38 per cent of net bank credit.

Disbursements to agriculture amounted to Rs 2,274 crore, an increase of 35 per cent over the previous fiscal.

"The bank has set an outstanding target of Rs 5,100 crore of advances to agriculture for the current financial year, which translates into an increase of 25.21 per cent over the previous fiscal," Mr Mukherjee said.

According to him, the bank views increasing volumes under agricultural credit as a business opportunity in view of the low non-performing assets under the sector. The bank's gross NPAs under agriculture were as low as 1.03 per cent (Rs 42 crore), he said.

Keeping in view the opportunities in the sector, the bank has rationalised its interest rates on agricultural advances. The rates on rural godowns, poultry and grape loans were brought down to 8.5 per cent, tractor finance to 10 per cent, crop loans to 8.5 per cent and SHG lending to eight per cent. Further, the bank has also relaxed collateral security norms, he said.

The Andhra Bank Chairman and Managing Director, Mr K. Ramakrishnan, said the bank has set a target of financing 3,000 units of tractors during the current fiscal. Under the tie up with HMT, the bank has set a target of financing 1,200 units out of 1,500 units of sale aimed by HMT in Andhra Pradesh alone.

He urged the HMT Tractors management to consider training educated unemployed rural youth on tractor mechanism in their factory floor. The bank would encourage these youth with loans to establish tractor repair centres in villages, he added.

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