The Hindu : Other States / Rajasthan News : Bank profit goes up

Online edition of India's National Newspaper
Friday, May 28, 2004

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Other States - Rajasthan

Bank profit goes up

By Our Special Correspondent

JAIPUR, MAY 27 .Bank of Baroda's Rajasthan zone did a business of over Rs.6,700 crores during the year 2003-04, registering a net profit of Rs.76.28 crores against the previous year's business of Rs.6,000 crores and profits which had stood at Rs.70.08 crores. The total deposits increased from Rs.4038.12 crores to Rs.4407.69 crores while the cost of deposits came down to 5.69 per cent from 6.95 per cent.

The business per employee of the zone recorded an increase to Rs.254.55 lakhs against Rs.220.62 lakhs in the previous year. The ratio of staff expenses to average business came down to 0.85 per cent from 1.04 per cent in the past.

Giving the details of the annual performance of the bank in Rajasthan zone where it has 323 branches, R.K.Bhalla, deputy general manager, said a major achievement during the period under review had been an impressive growth of 25.20 per cent in the savings bank deposits. The share of low cost deposits increased to 37.89 per cent this year from 33.30 per cent of the previous year.

The total advances by the bank, including the foreign currency loan, registered a growth of 11.46 per cent to reach Rs.2,307.44 crores while the retail lending portfolio, which included educational, housing and consumer loans, recorded a 46 per cent increase to touch Rs.398 crores, he noted. The number of customer increased from 11.72 lakhs to 23.82 lakhs during the period, he said.

Mr.Bhalla said the drought conditions prevailing in Rajasthan, where the Bank of Baroda is the lead bank in 11 of the 32 districts, made the recovery of loans, especially the farm loans difficult. However, the bank managed an overall NPA recovery of Rs.21.08 crore last year. At present the NPA to total advances in the zone stood at 5.56 per cent against 7.12 per cent in the period ending in March 2003.

The bank has set a target to increase its profits by 30 per cent in the current year and make a net profit of Rs.101 crores in the zone. The focus areas for the year would be retail credit, lowering of the NPA to one per cent and exhaustive coverage of all eligible farmers under the Baroda Kisan Credit Cards, Mr.Bhalla said.

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