The Hindu Business Line : South Malabar bank to adopt 8 villages

Thiruvananthapuram June 5 South Malabar Gramin Bank (SMGB), the regional rural bank sponsored by Canara Bank, is set to adopt eight villages in the State to free them from moneylenders.

The bank will extend loans to those in need in these villages, which are located in the districts where it is in operation. A survey has already been conducted in the villages in this regard, according to Mr N.S. Bose, Chairman of SMGB.

If found successful, the scheme would be extended to the other villages, he said here on Tuesday.

SMGB is opening a branch at Peroorkada here on June 7, which will mark the bank's entry into Thiruvananthapuram district. As of now, it has 218 branches spread across six districts, namely, Malappuram, Kozhikode, Wayanad, Thirssur, Palakkad and Pathanamthitta. The next stop of the bank will be Idukki district.

FISCAL TARGETS

Mr Bose said that the bank was targeting total business of Rs 4,000 crore in the current year. In 2006-07, it did a total business of Rs 3,144 crore, comprising deposits of Rs 1,407 crore and advances of Rs 1,736 crore, and posted a profit of Rs 21.54 crore.

The bank's credit-deposit ratio stood at 123 per cent, which, Mr Bose claimed, was the highest CD ratio for any bank in the State. As much as 90 per cent of the loans were disbursed to the priority sector, of which 68 per cent was to the agricultural sector.

Mr Bose said that the bank had computerised all the 218 branches and the area offices. It now proposes to establish core-banking facilities and open 25 ATMs, including biometric ones in rural areas, in the current year.

The bank is working out schemes for agro tourism projects and vegetable gardening on rooftops. Priority will also be given to promotion of agro processing units for adding value to farm products.

TIE-UPS

The bank will enter into arrangement with Canbank Mutual Fund and also with the new life insurance company being floated by Canara Bank, Oriental Bank of Commerce and HSBC to sell life insurance products.

Apart from Peroorkada, the bank is opening branches at Manacaud, Balaramapuram, Attingal and Nedumangad in Thiruvananthapuram district. In all, 20 new branches would be opened in the current year, Mr Bose said.

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