The Hindu : MGB loses top spot among RRBs

Online edition of India's National Newspaper
Saturday, May 17, 2003

Southern States

Southern States - Karnataka

MGB loses top spot among RRBs

By Our Special Correspondent

HUBLI May 16. Malaprabha Grameena Bank, (MGB), a regional rural bank sponsored by Syndicate Bank, has lost its no. one position among the RRBs in the country to a bank from Kerala.

R.S. Kamath, Chairman of the bank, disclosed this to presspersons here today. Deposits from NRIs made the Kerala bank emerge on top.

The grameena bank occupied the second position among the RRBs in all sectors except in per capita productivity. "We are far below because we have excess staff," Mr. Kamath said.

He said there had been a slight improvement in the NPA position, which had come down from 11 per cent to 10 per cent while the all India average for RRBs as a whole was around 16 per cent.

The Board of Directors, which met today to review the performance of the bank for 2002-03, decided to cut the interest rates further, which hovered between 11 per cent and 13 per cent.

Mr. Kamath said despite the adverse natural conditions, the bank had performed well and posted a net profit of Rs. 17.14 crore, which was almost double that of the previous year. What had added to the sharp increase in the profit was the settlement of outstanding loans.

He said the loan recovery percentage stood at 71. There had been a 12 per cent increase in the growth of deposits, which had gone up to Rs. 768 crore, a net increase of Rs. 82 crore. The bank disbursed loans amounting to Rs. 261 crore of which, Rs. 100 crore was given to the agriculture sector. Advances to the priority sector stood at Rs. 171 crore.

Mr. Kamath said the per employee productivity had gone up from Rs. 87 lakh to Rs. 96 lakh and the bank had opened three more branches taking the number of branches in Dharwad, Gadag, Haveri, and Belgaum districts to 241.

The bank had prepared an ambitious plan to reach a deposit target of Rs. 997 crore, and to disburse Rs. 805 crore by the end of the current financial year.

It had planned to increase the per employee business to Rs. 1.25 crore and make a profit of Rs. 30 crore. The bank would shortly open a branch in Haveri and had applied for licence to open seven more branches. Of the 150 branches, which had been computerised, 100 were in rural areas. A further 50 branches would be computerised in a phased manner, he said.

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