The Hindu : Kerala News : Bank of India to increase total credit

Online edition of India's National Newspaper
Wednesday, May 10, 2006

Kerala

Kerala

Bank of India to increase total credit

Staff Reporter

Bank planning to open more branches in the State

KOCHI: Bank of India is planning to reach a business level of Rs.2,500 crores from the present level of Rs.1,700 crores in Kerala. At the corporate level, the bank plans to reach Rs.200,000 crores during the current year. Zonal manager of the bank Babu Mathew said at a press conference that plans were afoot to reach a business level of Rs.2,000 crores by September 7, the foundation day of the bank. The current year marks the centenary of the bank.

He said the bank would increase the total credit in Kerala to Rs.1,300 crores with main focus on agriculture and other priority sectors. The advances to the agricultural and smallscale sector accounts for 52 per cent of the total credit in the State as against the stipulated level of 40 per cent.

The bank had targeted a deposit mobilisation of Rs.1,200 crores from the State during the current fiscal. The bank would open new branches in Kerala. The Kakkanad branch was to be opened soon, he said.

Mr. Mathew said core banking facility would be introduced in 42 branches in Kerala soon. The facility had already been introduced in 560 branches across the country and it would be extended to 900 branches by the end of this year. He said all the 73 branches in Kerala had been fully computerised out of which 42 branches had been networked with branches in 230 cities across the country.

He said the credit deposit ratio of the bank in Kerala was 97 per cent. The Kerala zone was aiming a credit deposit ratio of 100 per cent. Apart from the traditional financing sectors, the bank had been extending tailormade schemes for customers. There was 40.27 per cent increase in total credit and 73.48 per cent in retail credit during the last fiscal. The priority sector credit went up by 56.30 per cent, SSI credit by 18.43 per cent, agricultural credit by 46.88 per cent and educational loans by 73.48 per cent.

Mr. Mathew said there was significant growth in the case of housing loans, educational loans and gold loans in the State. The bank had plans for infrastructure financing and tourism related projects. The bank had introduced holiday loans.

He said the NPA of the bank had come down to 1.49 per cent at the national level. The net NPA in Kerala is 4.5 per cent.

The bank had extended aid to the deprived sections.

It had identified poor students, poor farmers, poor women, poor artisans under a new scheme. The aid extended included Rs.86.02 lakhs to 72 poor students and Rs.26.48 lakhs to poor farmers.

The net profit of the bank surged by 106.28 per cent, touching Rs.701.44 crores as against Rs.340.05 crores in the previous fiscal. The total business grew 18.14 per cent to touch Rs.1,60,594 crores and retail credit grew by 36.71 per cent. Global deposits had reached Rs.93,932 crores and global advances Rs.66,662 crores.

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