Indian Banks

Andhra Bank, one of the leading public sector banks in the country, expects to achieve a net profit of Rs 1000 crore by the end of the current fiscal.

The Hyderabad-based bank is also eyeing a total business of Rs 1.3 lakh crore by the end of 2009-10.

Addressing media persons A A Taj, executive director, Andhra Bank said, “During the April-December period of this fiscal, the bank has already clocked net profit of Rs 806 crore, a 78.32 per cent jump over Rs 452 crore achieved in the corresponding period of the previous fiscal. We hope to reach a net profit of Rs 1000 crore by the end of this fiscal.”

The bank’s total business touched Rs 1,17,899 crore for the third quarter ended December 31, 2009 which is a growth of 23.04 per cent over the same period of previous fiscal. Of this total business, deposits stood at Rs 66,547 crore while advances reached Rs 51,352 crore, recording a growth of 23.7 per cent and 22.19 per cent respectively over the same period of the previous fiscal.

Stating that the bank has maintained its consistent performance on the asset quality front, Taj said, the gross NPA (Non-Performing Asset) reduced from 0.89 per cent to 0.87 per cent whereas the net NPA came down to 0.17 per cent from 0.21 per cent.

On the possibility of the bank raising interest rates in the wake of the recent hike in cash reserve ratio by the Reserve Bank of India by 75 basis points, he said, “We don’t see any possibility of an upward revision in interest rates at least till June this year as there is enough liquidity in the system.”

Taj pointed out that Andhra Bank was focusing more on retail deposits rather than bulk deposits and the bank was giving emphasis on agriculture, Micro, Small and Medium Enterprises (MSMEs) and retail credit.

On branch expansion, he said that the bank has opened 112 branches across the country during the April-December period of this fiscal, taking the bank’s total branch network to 1544. Plans are afoot to open 10 more branches by the end of March 2010.

Talking on financial inclusion, Taj said, “Andhra Bank has achieved 100 per cent financial inclusion in Srikakulam and Guntur districts of Andhra Pradesh. Our smart card operations have begun on a large scale and we have already issued over 50,000 smart cards to the customers in the rural .”

(BS)

Popularity: 1% [?]

Andhra Bank, the public sector lender, has achieved a total business of Rs 4269 crore in Orissa in the April-December period of the current financial year, a growth of around 35 per cent over the same period of 2008-09.

Out of the total business of Rs 4269 crore, deposits stood at Rs 2713 crore while advances were at Rs 1556 crore, a growth of 35 per cent and 40 per cent respectively over the corresponding period of the previous fiscal.

The bank’s CD (credit-deposit) ratio in Orissa stands at 57 per cent compared to its national average of 77 per cent.

A A Taj, executive director, Andhra Bank said, Our CD ratio in Orissa will improve in the years to come as we will be financing many big upcoming industrial projects in the state.

Andhra Bank operates through its 106 branches in 26 districts across the state.

The bank has plans to open its branches in the four left out districts- Malkangiri, Nuapada, Boudh and Phulbani in the next fiscal.

Andhra Bank which has the led bank responsibility in two districts of south Orissa- Ganjam and Gajapati, has achieved 100 per cent financial inclusion in Ganjam, claimed Taj.

The bank which is running an institute called the Andhra Bank Institute for Rural Development (ABIRD) at Chhatrapur in Ganjam district has already trained more than 6,500 farmers, unemployed youth and Self-Help Groups.

The bank intends to open a similar institute in Gajapati district.

(BS)

Popularity: 1% [?]

State-owned lender Andhra Bank has reported a 29.1 per cent increase in net to Rs 275 crore for the quarter ended December 2009 compared with Rs 213 crore during the same period last year. Total business was up 23.03 per cent to Rs 117,899 crore, including Rs 66,547 crore of deposits and Rs 51,352 crore of advances, during the quarter from Rs 95,822 crore last year.

(BS)

Popularity: 1% [?]

State-owned lender Andhra Bank reported a 29.1 per cent increase in net profit to Rs 275 crore for the quarter ended December 31, 2009, as compared with Rs 213 crore during the same period last year.

Total business was up 23.03 per cent to Rs 1,17,899 crore, including Rs 66,547 crore deposits and Rs 51,352 crore advances, during the quarter from Rs 95,822 crore last year.

Speaking to the media here, Andhra Bank executive director Anil Girotra said yields on advances contributed to the growth during the quarter as retail, MSME and agriculture sectors grew 40.73 per cent, 53 per cent and 27.2 per cent respectively.

Net interest income during the quarter increased to Rs 583 crore, up 29.26 per cent, from Rs 451 crore during the same period last year. Non performing assets was up to Rs 446.95 crore as compared with Rs 373.36 crore.

Other income, however, was down to Rs 224 crore sequentially from Rs 233 crore during September as treasury income declined 30.88 per cent to Rs 47 crore from Rs 68 crore.

Girotra said the bank need not raise further capital as credit to risk weighted assets ratio (CRAR) was 14.95 per cent, as against the minimum 9 per cent prescribed by the Reserve Bank of India. This was despite making Rs 37.5 crore provisions for enhanced salary and pension during the quarter. Similar provisions would be made during the current quarter too depending on the agreements with the Indian Banks Association, he said.

The bank ceased to be a corporate agent for Life Insurance Corporation. It commenced operations of IndiaFirst Insurance Co Limited, a life insurance joint venture of Andhra Bank with Bank of Baroda and Legal and General (UK), this month. “Insurance will be a focus area of our fee-based services,” he said.

Popularity: 1% [?]

“Andhra Bank” was founded by the eminent freedom  fighter and a multifaceted genius, Dr.Bhogaraju Pattabhi Sitaramayya. The Bank was registered on 20th November 1923 and commenced business on 28th November 1923 with a paid up capital of Rs 1.00 lakh and an authorised capital of Rs 10.00 lakhs.Dr Bhogaraju Pattabhi Sitaramayya was born on 24th November 1880 in Gundugolanu village, West Godavari District in Andhra Pradesh. He was a renowned Freedom Fighter and a very illustrious personality.

Andhra Bank was registered on 20 November 1923 and commenced business on 28 November 1923 with a paid up capital of Rs 1.00 lakh and an authorised capital of Rs 10.00 lakhs. The Bank crossed many milestones and the Bank’s Total Business as on 30.06.2008 stood at Rs.83,256 Crores with a Clientele base over 1.74 Crores.The Bank is rendering services through 2139 Business Delivery Channels consisting of 1371 branches, 66 Extension Counters, 38 Satellite Offices and 664 ATMs spread over 21 States and 2 Union Territories as at the end of June, 2008. All Branches are 100% computerized, 1186 units viz., 1101 Branches, 68 Extension Counters, 15 Service Centres networked under Cluster Banking solution and providing “Any Branch Banking(ABB)”. Real Time Gross Settlement (RTGS) Facility and National Electronic Fund Transfer (NEFT) facility has been introduced in 723 Branches. To provide value-added services to Customers, the Bank has set up its own 664 ATMs as on 30.06.2008. Of which 03 Mobile ATMs and two with Biometric access. Besides, ATM sharing arrangements with several Banks including SBI group, IDBI Bank, UTI Bank, HDFC Bank, Indian Bank and others under National Financial Network Switch covering 24856 ATMs.

Bank is migrating to “Centralized Core Banking Solution”118 Branches have already migrated to CBS. It is proposed to cover 550 branches by September 2009. This will benefit the customers, who will have access to banking and financial services anytime, anywhere through multiple delivery channels.Andhra Bank is a pioneer in introducing Credit Cards in the country in 1981 .^]

Our Bank introduced Internet Banking Facility (AB INFI-net) to all customers of cluster linked branches.Rail Ticket Booking Facility is made available to all debit card holders through IRCTC Website through a separate gateway. Corporate Website is available in English, Hindi and Telugu Languages communicating Bank’s image and information. Bank has been given ‘BEST BANK AWARD’ a banking technology award by IDRBT, Hyderabad for extensive use of IT in Semi Urban and Rural Areas on 02.09.2006.IBA Jointly with TFCI has conferred the Joint Runner-up Award to the Bank in the Bet Payments initiative in recognition of outstanding achievement of the Bank in promoting ATM Channel.Bank successfully conducted ” Bancon 2006″, a two day event at Hyderabad, deliberating on Inclusive Growth – A New Challenge. Kiddy Bank Scheme, with insurance benefits, was relaunched to inculcate savings habit among the children. Bank has mobilized nearly 90000 new accounts during 2007-08.As a part of “Financial Inclusion”, Bank adopted two districts, namely, Srikakulam in Andhra Pradesh and Ganjam in Orissa and achieved 100% coverage. Bank has introduced Smart Card Scheme Pilot project in Warangal District and the same will be extended to other Lead Districts in due course. Bank has opened 2.11 lakh accounts under “No-frill accounts” category till 30.06.2008.

Andhra Bank, along with A P State Government, NABARD, Canara Bank, Indian Bank, IOB and SBH sponsored the Andhra Pradesh Banker’s Institute of Entrepreneurship Development, which will offer training to unemployed youth for improving their skills in Andhra Pradesh.

Bank adopted Gundugolanu village, West Godavari District, Andhra Pradesh – birth place of Dr.Bhogaraju Pattabhi Sitaramayya for all-round development. A comprehensive budget with an outlay of Rs.5.50 Crore is finalized for improving health, sanitation, education and social service facilities in the village.

Bank has been ranked No.1 in terms of number of Life Insurance Policies mobilized amongst all the Agency Banks dealing with “Life Insurance Corporation of India”. Bank also has tie-up with United India Insurance Company Limited under Bancassurance(Non-Life).

Bank was ranked 532nd for the year ended 31.03.2007 amongst Top 1000 Banks in the world by “The Banker” – a London based publication based on Tier I Capital as defined by Basel’s Bank for International Settlements (BIS).^]

Bank entered MoU with Bank of Baroda and Legal & General Group of UK to form a joint venture life insurance company. The shareholders’ agreement has already been signed and necessary formalities are being completed for setting up of the company. The JV Company is already incorporated in June’08 and is in the process of filing for approvals from IRDA etc.,

Bank is in the process of forming a Joint Venture in Malaysia in association with Bank of Baroda and Indian Overseas Bank.

The Bank opened its Representative Office in Dubai in May, 2006 and Representative Office at Jersey City, New Jersey (U S A),in June 2009.

Bank feels United States would be an ideal location as Andhra Bank has been a household name among many NRIs there.A foothold in New Jersey is strategic for the 84 year old bank as it has a large number of non resident Indians from Andhra Pradesh.

Thus Bank accords utmost concern to customer satisfaction by offering innovative and need based financial products and services using state-of-the art technology.

Popularity: 3% [?]