The Hindu Business Line : AP Grameena Vikas Bank posts Rs 15.49-cr net profit

Money & Banking - Financial Performance
Corporate Results - Regional Rural Banks
States - Andhra Pradesh
AP Grameena Vikas Bank posts Rs 15.49-cr net profit

Our Bureau

Hyderabad May 6 The Andhra Pradesh Grameena Vikas Bank (APGVB), the largest regional rural bank (RRB) in the country sponsored by State Bank of India, has posted Rs 15.49-crore net profit in 2006-07, the first year of operation after its formation.

The bank, which was formed by the amalgamation of five RRBs covering eight districts in the State, mobilised deposits of Rs 2,718 crore, marking a 24.16-per cent increase over Rs 2,188 crore consolidated deposits of the amalgamated banks. Similarly, the advances grew 16 per cent to Rs 2,095 crore over the previous fiscal, Mr A. Anantha Krishna, Chairman, told newspersons here. The bank had earned an income of Rs 313 crore, marking an increase of 21.8 per cent compared to the previous fiscal. "During the year, we could bring down the net NPAs from 3.33 per cent to 1.89 per cent while the gross NPAs came down to 4.01 per cent from 6.05 per cent in 2006-07," Mr Krishna said.

"Our total business was at Rs 4,008 crore in 2006-07. We target to achieve 25 per cent growth this year," he said.

Expansion plan

For 2007-08, the bank has lined up major expansions. It plans to open 52 branches to add to its current network of 483 branches in the eight districts of Warangal, Medak, Khammam, Nalgonda, Mahabubnagar, Visakhapatnam, Vizianagaram and Srikakulam. It had already applied to the Reserve Bank of India (RBI) for licence, according to Mr Krishna.

Further, to increase its fee-based income, APGVB would introduce insurance and mutual fund products. "We are planning to tie-up with SBI Life and SBI Mutual Fund for the purpose," the Chairman said.

In June this year, APGVB would launch a Smart Card for distribution of pension and other services in 32 villages under Ghanapur mandal in Warangal.

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