The Hindu : Tamil Nadu / Coimbatore News : Andhra Bank to launch Kiddie Bank

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Friday, May 11, 2007
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Tamil Nadu

Tamil Nadu - Coimbatore

Andhra Bank to launch Kiddie Bank

Staff Reporter

Coimbatore: Andhra Bank as part of its value-added service for its customers has decided to launch Kiddie Bank project in a fortnight for inculcating the habit of saving among children.

Talking to The Hindu , the Chairman of the bank, K. Ramakrishnan, said the bank proposes to meet children in schools and distribute the dolls through the teachers wherein they could save money. The savings when converted into deposits could get higher rates of interest, he said.

The bank had already launched a number of biometric ATMs and also two mobile ATMs in Hyderabad. In addition, the bank had introduced railway ticket booking facility for its customers besides a tie-up with Kingfisher Airlines for buying the tickets and boarding pass through the ATMs. There was a temporary mobile ATM facility at Kottayam for the benefit of pilgrims visiting Sabarimala towards the end of every year during the season and efforts were on to set up a permanent ATM there.

Retail deposits

The value-added products launched recently included retail deposits of short duration for higher rates of interest such as 9.75 per cent and 10.25 for senior citizens.

As part of the concept of relationship beyond banking, Dr. Ramakrishnan visited some of the customers at their place to know their expectations from the bank. He pointed out that the bank contributed at least one per cent of its profits for social cause wherein it had given offerings to the temples for creating facilities for the pilgrims besides spending on physically challenged children and for educational projects and old age homes.

Expectation

When asked about the customers' expectation from the bank, Dr. Ramakrishnan said that most of the customers especially those in textile business with a tight margin were worried about the appreciation of rupee value vis-à-vis US dollar. To sustain business and achieve targets, the customers expected Government intervention as in the case of other countries.

On higher rates of interest by some banks and the resultant circular by RBI, Dr. Ramakrishnan said that in a competitive market any bank charging usurious interest would not survive and the rates would stabilise eventually but the regulator might have reasons for asking the banks to fix a cap on loan rates.

Inflation

For addressing inflation, if there was a need for mopping up funds then another hike in interest rates was possible but would definitely stabilise eventually, he said.

Andhra Bank was looking at a growth of 25 per cent in credit and 15 to 16 per cent on deposits. The bank was keen to shed bulk deposits and focus more on low-cost retail deposits besides current and savings accounts especially in smaller tier II cities and towns, he said.

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