The Hindu Business Line : AP rural bank draws up aggressive business plans

Big business
Wants to set up currency chests in each of the eight districts under its purview.
Plans to computerise another 189 of its branches.
Will set up standalone low-cost ATMs, at least one in each district headquarters.

Hyderabad , Sept. 10

The Andhra Pradesh Grameena Vikas Bank (APGVB), which has emerged as the country's largest sponsored regional rural bank with Rs 4,000 crore size, has drawn up aggressive business plans targeting a growth of 25 per cent in topline for the current fiscal.

The SBI-sponsored bank has plans to introduce value-added services to augment its business volumes, set up currency chests in each of the eight districts under its purview, computerise another 189 of its branches, start another 32 branches to take the total network to 515 branches and set up standalone low-cost ATMs, at least one in each district headquarters, the APGVB Chairman, Mr A. Anantha Krishna, said.

Good Growth

Addressing newspersons here on Saturday, he said the bank has emerged with the amalgamation of five erstwhile RRBs - Sri Visakha Grameena Bank, Nagarjuna Grameena Bank, Sangameshwara Grameena Bank, Manjira Grameena Bank and Kakathiya Grameena Bank - all sponsored by SBI in eight districts of Andhra Pradesh - Srikakulam, Vizianagaram, Visakhapatnam, Khammam, Nalgonda, Mahabubnagar, Medak and Warangal.

The now Warangal-headquartered APGVB has reported a business of Rs 4,001 crore for the fiscal ended March 2006 with deposits of Rs 2,189 crore and advances of Rs 1,812 crore, a growth of 16.72 per cent and 18.26 per cent, respectively over the previous fiscal.

The bank has successfully brought down its gross non-performing assets (NPAs) to 6.05 per cent from 29.93 per cent in the previous fiscal. It now plans to bring down the gross NPAs further to below four per cent, he said.

Having posted a net profit of Rs 23.06 crore and operating profit of Rs 41.6 crore for the last fiscal, the bank has set its eyes on a net profit of Rs 34 crore. The bank has plans to go aggressive in housing loans, education loans, consumer loans and others.

APGVB, which has emerged top in the country in lending to self-help groups (SHGs) with lending of more than Rs 260 crore to over 1.28-lakh SHGs, has plans to expand to all SHGs under its purview the smart card programme, which was successfully implemented in 250 SHGs with 1,250 cards in the erstwhile Sri Visakha Grameena Bank.

The bank proposes to take the total lending size to SHGs to around Rs 400 crore, Mr Anantha Krishna said.

More Stories on : Regional Rural Banks | Andhra Pradesh

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