The Hindu Business Line : Andhra Bank confident of crossing Rs 1 lakh-cr business this fiscal

Visakhapatnam, Nov. 25 Andhra Bank, currently doing business of Rs 87,000 crore, is confident of crossing the Rs 1,00,000 crore mark by the end of the fiscal, according to Mr R.S. Reddy, Chairman and Managing Director.

Mr Reddy, who was here to participate in a seminar on financial inclusion in Andhra University on Tuesday, said at a press meet that the bank had lent Rs 8,000 crore to corporates during the past three months, after he had assumed charge as Chairman, and was going ahead with the introduction of technology-based products aggressively.

Service steps

The bank would open 50 branches, most of them outside the State, and implement core banking solutions in all branches by the end of March 2009. The bank was also planning to refurbish 150 branches and shift 100 in order to offer better services.

Mr Reddy said Andhra Bank had signed a MoU with Bank of Baroda and Legal and General Group of the UK to form a joint venture life insurance company and was in the process of filing for approvals from the Insurance Regulatory Development Authority.

The bank was also in the process of forming a joint venture in Malaysia with Bank of Baroda and Indian Overseas Bank for setting up a bank there. He said the bank would recruit 1,000 employees and impart training to them.

Financial inclusion

Earlier, Mr Reddy delivered a lecture on financial inclusion at a seminar in Andhra University. He urged banks to take specific steps to tackle the problem of financial exclusion. “Banks should realise that the poor are creditworthy and that they are bankable and, therefore, are good credit risks. Innovative delivery mechanisms have to be developed to reach the poor,” he remarked.

He referred to the Smart Card System of payments introduced on a pilot basis in Warangal district of Andhra Pradesh to reach the rural masses. General purpose credit cards, with a limit of Rs 25,000, could also be considered by many banks for the purpose.

He called for a combined, concerted effort by banks, NGOs, self-help groups, state governments and other agencies to achieve financial inclusion.

Mr A.L. Nageswara Rao, General Manager of the bank, accompanied Mr Reddy.

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