Tirupati, August 09: The Andhra Bank has announced an ambitious plan to improve its delivery network by opening 100 new branches every year.
Recalling the initiatives made this year to put the bank on the ‘transformation path’, Chairman and Managing Director R.S. Reddy said that 121 branches would be opened by August 15 and another 100 by March 2010, apart from 50 ATMs. “Also, we will open 100 branches every year to ensure equitable distribution of branches across the country”, he added. The bank had set for itself a target of achieving a business mix of Rs.1,30,000 crore by March 2010, at a growth rate of 30 per cent and Rs.1,50,000 crore by September.
Towards improving its brand image, ‘Dolle – The Dolphin’ had been introduced recently as its mascot, to drive home the message that the bank was friendly, intelligent and responsive.
Phenomenal rise
Citing the impressive results achieved for the first quarter, Mr. Reddy said the net profit saw a phenomenal rise from Rs.77 crore to Rs. 256 crore, posting a growth rate of 230 per cent.
“The total income grew by 38 per cent while the total expenditure was contained at 31 per cent.
The capital reserve adequacy ratio (CRAR) improved to 14.75 per cent, while the non-performing assets (NPAs) were pegged at 0.22 per cent of the net advances”. Business in Tirupati zone was poised to touch Rs.3,690 crore by the end of the current fiscal.
Going Dutch
Eyeing beyond the shores, the bank had signed an MoU with Bank of Baroda and Indian Overseas Bank for launching a banking subsidiary in Malaysia, a growing economy with sizeable Indian population. Mr.Reddy cited flourishing of India-centric trade and the high margins as the two factors that clinched the deal in their favour.
The plan to go Dutch was to ensure that the capital of Rs. 400 crore required to open the subsidiary was met by the three banks.
The Chairman and Managing Director will attend a bank-level vigilance meeting by evening.
–Agencies–