The Hindu Business Line : Mahesh Co-op Bank profit rises 39%

Hyderabad April 24 The Hyderabad-based Andhra Pradesh Mahesh Co-operative Urban Bank Ltd has posted a 39 per cent surge in profit before tax at Rs 6.75 crore in 2006-07 against Rs 4.87 crore earned in the previous fiscal.

"Higher lending and reduction in cost of deposits have driven us on the path of increased profitability," Mr Ramesh Kumar Bung, Chairman, AP Mahesh Co-operative Urban Bank Ltd, told newspersons here.

The bank's business touched Rs 675 crore in 2006-07.

The advances had gone up by 42 per cent to Rs 261 crore from Rs 184.35 crore in the corresponding period last year while the deposits grew 12 per cent to Rs 414.64 crore.

The gross income increased to Rs 52.48 crore from Rs 47.94 crore and net interest income rose to Rs 26.24 crore from Rs 21.96 crore.

The capital and reserves stood at Rs 113 crore as on March 31, 2007 against Rs 110 crore last year.

The working capital has increased 9 per cent to Rs 563.9 crore.

"We are continuing to achieve quality business. Our net NPAs continued to be at zero per cent," Mr Bung said.

The capital adequacy ratio is at 25 per cent against 9 per cent prescribed by the Reserve Bank of India.

Fee-based income

The bank would focus on increasing the fee-based income.

"Our fee-based income from insurance services has doubled to Rs 20 lakh in 2006-07 compared to previous fiscal," the chairman said.

The bank has tied up with Max New York Life Insurance Company for insurance business.

Buyout biz

Encouraged by the buyout business, Mahesh Bank is expanding its operations.

"We will complete implementation of core banking solution over next two months," Mr R.S. Jaju, Managing Director and CEO of the bank, said.

"We will start ATM network immediately afterwards."

The banks has also lined up expansion in the Telangana districts and submitted proposals to the RBI for opening three more branches at Karimnagar, Nizamabad and Gachibowli in Hyderabad.

Further, the bank has also applied for licence to undertake foreign exchange business, Mr Jaju added.

More Stories on : Financial Performance | Co-operatives | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page