The Hindu Business Line : North Malabar bank logs 25 pc growth in business

The total business of the regional rural bank increased to Rs 1,809 crore from Rs 1,449 crore in the previous year. The bank has a clientele base of 13.29 lakh.

According to Mr S.S. Shet, Chairman of the bank, the operational profit and net profit during the year touched Rs 16.59 crore and Rs 9.57 crore, respectively. The per-employee business increased to Rs 1.85 crore from Rs 1.48 crore and per-branch business from Rs 9.53 crore to Rs 11.37 crore during the year. The reserves stood at Rs 122.77 crore.

The total deposits of the bank grew to Rs 890 crore from the previous year's Rs 725 crore, registering a growth of 23 per cent. The NRE deposits stood at Rs 94 crore.

Advances up

The outstanding advances increased by 27 per cent from Rs 723 crore to Rs 918 crore. Priority sector advances were at Rs 811 crore, constituting 88 per cent of the total lending.

Out of this, agricultural credit was to the tune of Rs 451 crore, which accounted for almost 50 per cent of the total credit.

During the year, the bank disbursed Rs 777 crore under various credit schemes. The credit-deposit ratio was 103 per cent as against the State average of 67 per cent.

The bank recorded a recovery rate of 82 per cent, thereby bringing down the gross NPA level to 3.04 per cent and the net NPA level to 1.75 per cent of the outstanding advances. The bank has signed memoranda of understanding with Bajaj Allianz to sell life insurance products and with United India Insurance Company to sell non-life insurance products.

Also, it has entered into new business areas such as collection of BSNL telephone bills, disbursement of PF pension under the provisions of EPF Act and disbursement of salary of temple staff.

During the current year, the bank has targeted a total business of Rs 2,200 crore, comprising deposits of Rs 1,075 crore and advances of Rs 1,125 crore. It also expects to increase the net profit to Rs 21 crore during the year.

Besides, as many as 100 branches will be fully computerised. The bank has obtained permission to deal in foreign exchange transactions and selling of mutual fund products.

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